American Airlines Says Qatar Airways Seeks to Acquire 10% Stake

By Paul Riegler on 22 June 2017
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DSC_0591American Airlines reported Thursday Qatar Airways plans to make “a significant investment” in the Fort Worth-based carrier.

In a regulatory filing, American said Qatar Airways had notified the Federal Trade Commission of its intent to buy at least $808 million of American stock, representing roughly 16.7 million shares at Wednesday’s closing price.

“The proposed investment by Qatar Airways was not solicited by American Airlines and would in no way change the company’s board composition, governance, management or strategic direction,” American said in a statement.

The Doha-based carrier said it plans to acquire as much as 10% of the company.

Board approval is required by American before anyone can take a 4.75% stake or more in the company and the airline said that it hasn’t received a request for Qatar Airways to do so. In addition, foreign companies are limited by U.S. law to a voting interest of 24.9% in a U.S. airline.

(Photo: Accura Media Group)

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