AMR skeptical of little-known firm's offer to buy
Posted Tuesday, Mar. 29, 2011
By Andrea Ahles
aahles@star-telegram.com
star-telegram.com
A little-known Florida firm offered to buy American Airlines' parent company, AMR Corp., for $3.25 billion Tuesday, but AMR is skeptical that the offer is genuine.
AMR said it received a letter from Sterling Global Holdings, which offered $9.25 a share for the Fort Worth-based company, a 48 percent premium over Tuesday's closing price of $6.58.
"AMR Corp. is investigating the matter, but at this time we have no corroborating information to demonstrate the offer described in the letter is legitimate," it said in a statement.
"Prior to receiving the letter, AMR had never heard of Sterling Holdings."
The company said it had not been able to confirm whether Sterling Global Holdings is a shareholder of AMR. A search of the Securities and Exchange Commission's database of filings also did not have any record of a firm named Sterling Global Holdings.
Al Weintraub, who sent the letter and is part of Sterling Global, said in a telephone interview Tuesday that he is an AMR shareholder and has bank financing to complete the deal.
He added that he has already talked to other AMR shareholders about taking the airline private.
"There is a lot of consolidation in the industry, and we have dealings with another carrier," Weintraub said. "The two would work beautifully together."
Weintraub would not identify the other airline, except to say it is privately held and in the U.S.
He also would not talk specifically about his firm and whether it had completed any other financing deals.
Last week, Sterling Global Holdings sent a similar letter to Eastman Kodak Co. offering to buy the Rochester, N.Y., company for about $1.3 billion, or $4.81 per share. After the offer was made public, Kodak's shares rose to $3.60 from about $3.25 before falling to $3.40 on Tuesday.
In an interview with the Rochester Democrat and Chronicle, Weintraub said his company buys distressed firms.
"I have been buying distressed companies for the past 15 years," Weintraub told the paper.
"Our dealings have been in the hotel and casino area as well as buying assets of large bankrupt companies such as GM and Chrysler," he said. "We have bought some of their dormant properties and land left in the bankrupt entities. Our company looks for companies that have turnaround potential."
Kodak has also said it had never heard of Sterling Global until it got a letter. Kodak confirmed that Sterling Global is not a shareholder.
Staff writer Scott Nishimura contributed to this report.
Andrea Ahles,
817-390-7631
star-telegram.com |
