2023-03-09 12:09:43 ET
Two Apollo Global-affiliated ( APO ) directors left the Sun Country Airlines board due to the Dept. of Justice antitrust division's concerns about interlocking directors following Apollo's planned acquisition of Atlas Air Worldwide ( NASDAQ: AAWW ).
"After the division raised concerns regarding a potential interlock arising from Apollo’s proposed acquisition of Atlas Air, the two Apollo-affiliated directors resigned from the Sun Country board," the DOJ said in a press release on Thursday. The release didn't specify when the Apollo directors left the Sun Country board.
The news comes after DOJ antitrust Chief Jonathan Kanter in May said he plans to take a stricter stance on private equity firms acquiring companies. Bloomberg reported in late October that the DOJ was investigating a number of PE firms, including Apollo ( APO ), KKR ( KKR ) and Blackstone ( BX ), regarding whether their influence on corporate boards is violating antitrust laws. The probe focuses on the firms' practice of placing executives on boards of companies in the same sector.
The news also comes as Atlas Air ( AAWW ) shares have been weaker in recent weeks as investors have been concerned about the sale to Apollo ( APO ) as there has been no word from the Dept. of Transportation in regards to the transaction. Atlas Air said in its 10-K filing on Feb. 23 that it was awaiting DOT approval after all approvals had been received.
Atlas Air ( AAWW ) shares ticked down 0.4% in trading on Thursday.
Investors were also concerned about the Atlas Air ( AAWW ) this week as the DOT on Tuesday said it full supported the DOJ suit to block JetBlue's ( JBLU ) planned purchase of Spirit Airlines ( SAVE ) and announced its intention to utilize its power to block the transfer of Spirit's airline certificate.
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Apollo directors left Sun Country Airlines amid Atlas Air Worldwide takeover