A Big Deal is about to happen
Shares of American Airlines’ parent rose Friday after a media report that the company was the target of a private buyout bid by investors including Goldman Sachs and British Airways.
Analysts discounted the report, noting the legal barriers to a foreign carrier owning a U.S. airline.
Business Week reported in its Feb. 26 issue that the investor group is planning to bid between $46 and $52 per share — or $9.8 billion to $11.1 billion — for AMR. That would represent a healthy premium over AMR’s closing price Thursday of $38.05.
The magazine article, based on unnamed sources, said a bid is not certain.
A deal involving British Airways could face legal obstacles due to laws that cap foreign ownership of a U.S. airline at 25 percent.
