oneworld

Qatar Airways has made an unsolicited bid to take up to a 10% stake—an investment of at least US$808m—in American Airlines, an SEC filing American submitted Thursday revealed. According to filing, Qatar Airways would buy the stake on the open market. If that happens, it would make the carrier one of American’s largest investors. 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. <br/>

In a letter to employees, American Airlines CE Doug Parker says he finds Qatar Airways’ unsolicited bid to invest in American “puzzling” and that it strengthens his resolve against illegally subsidised companies. Parker’s letter confirms the cool response indicated in the SEC-8K filing American made Thursday to give notice that Qatar Airways is seeking to take an up to 10% stake in American. But Parker says: “While anyone can purchase our shares in the open market, we aren’t particularly excited about Qatar’s outreach, and we find it puzzling given our extremely public stance on the illegal subsidies that Qatar, Emirates and Etihad have all received over the years from their govts. We remain committed to that effort, and we will remain so even with this potential investment.” <br/>