Qatar Airways seeks 10% stake in American Airlines

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Qatar Airways seeks 10% stake in American Airlines

Postby Greg on Thu Jun 22, 2017 8:01 am

Qatar Airways has made an unsolicited bid to take up to a 10% stake—an investment of at least $808 million—in American Airlines, an SEC filing American submitted Thursday revealed.

According to the June 22 filing, Qatar Airways would buy the stake on the open market. If that happens, it would make the Doha-based carrier one of American’s largest investors. Dallas/Fort Worth-based American stresses that the proposal was not solicited and says it “would in no way change the company’s board composition, governance, management or strategic direction.”

For now, it is unclear if or how the deal will proceed. In its filing, American states that its certificate of incorporation prohibits anyone from acquiring 4.75% or more of the company’s outstanding stock without advance approval from the board following a written request. The company’s board did not receive any written request from Qatar Airways, American says. American also notes that foreign ownership laws limit the total percentage of foreign voting interest in a US company to 24.9%.

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