Hudson Securities Leaves AirTran Holdings $7.50 PT, Buy Rating Unchanged (AAI)

Hudson Securities left its AirTran Holdings AAI $7.50 price target and Buy rating unchanged in a research report published today. In the report, Hudson Securities states, "No change to our $7.50 PT which is predicated on our belief that AAI & LUV successfully close on their planned merger. Our Buy rating on AAI is tied to our Buy rating on LUV and the upside we believe follows upon merger closing. Under the merger agreement, each share of AAI is to be exchanged for $3.75 in cash & .321 shares of LUV subject to an adjustment mechanism designed to provide $7.25 to $7.75 per share to AAI. If LUV's stock price is greater than $12.46, the value is to be $7.75 (with fewer shares of LUV stock issued), whereas if LUV's stock is less than $10.90, LUV has the right to offer $7.25 & offer more cash (in lieu of shares). Our PT on LUV is $17." Shares of AirTran Holdings were trading at $7.40 at the time of posting, down 0.13% from Tuesday's market close.