American Gets Takeover Offer from Florida Firm - Let the Games Begin...

[johnsonrod]

Merge with a privately-held airline? Who could that be - Spirit? I think you should just merge AMR with Eastman Kodak and see what happens...

See the article below:

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.​

Read more: http://www.star-telegram.com/2011/03/29/2959345/amr-skeptical-of-little-known.html#ixzz1I5per0CV​

 

[RNP.15]

Corporate raider? Then part the thing out to the highest bidders?

 

[pilotyip]

Is the sum of the parts of AMR greater than the offered price? The assets could then be sold, planes, gates, etc., and make a profit. Kirk Kororian (sp?) was famous for that, he did it at TransAmerican back in the 80's

 

[NWaviator]

"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.​

Who could this be? Privately held? Come on smart guys let's hear the options....

 

[tomgoodman]

Could be another "pump and dump" stock price manipulation scheme. imp:

 

[clr4theapch]

who is still privately held in the US.. AAY? and I thought Spirit went public last year..

 

[SWA/FO]

Spirit went public with a strike last year, but its still a private company.

 

[UpNDownGuy]

Silly. AMR will tell this guy to buzz off, especially once they get the $3.75 billion offer I just sent. Of course, I need to complete my acquisition of Coca-Cola and Caterpillar first.

 

[SLUF4]

Corporate raider? Then part the thing out to the highest bidders?

It's similar to the Bluestar Airlines situation back in the 80's

 

[bravodude]

I think it would be fitting that the pilot group who is responsible for BM be taken private and then merged with another carrier under RELATIVE SENIORITY!

 

[johnsonrod]

Reminds me of when Trump tried to buy AMR back in the latter 80s. Crandall stared him down and Trump made a lot of cash off the stock price increase...

 

[airgator]

Sterling holdings sounds legit. I think I'm gonna dump all my retirement savings into AMR and hope it goes through and ride it for 50%.

http://www.hulu.com/watch/10310/saturday-night-live-bad-idea-jeans

 

[OurMoney1]

The Titans are hiring hedge funds to shake things up a little, find out what Wall Street is willing to pay. Wouldnt suprise me either to learn Branson is somehow behind this. BA would have a fit. Titans forcing hands....just like a cheap poker table boys but the stakes are billions of pounds of egos and aluminum.

 

[Flyby1206]

Sun Country is buying AMR. You heard it here first! Only US based private airlines would be Sun Country, Virgin America, and Spirit

 

[pilotyip]

Sun Country is buying AMR. You heard it here first! Only US based private airlines would be Sun Country, Virgin America, and Spirit

hey what about JUS, we are looking for more MD's, perfect deal

 

[iluvflying]

Mystery Buyer bids for American Airlines

http://www.bizjournals.com/triad/news/2011/03/31/mystery-buyer-bids-for-american-airlines.html

 

[ultrarunner]

You have to go all the way back to mid-2008 before you seen even just a few months of trading above 9 bucks.

While this offer is a hoax, I'd take nearly 10 bucks for this stock in a heartbeat!

 

[Godfather]

Gordon Gecko is back in the game!

"Blue Horseshoe likes AMR"

 

[Fly-By-Cable]

Quick thought. Does anyone know how, if at all, pilots' and FA's pensions will be effected if this type of asset transfer occurs? Any provisions in terms of "change of control"? If so, this could likely be a collaboration between AMR and this firm to force retirements, allowing AMR to get what they often call " industry highest labor costs" under control. Thoughts?

 

[FR8dognit]

Quick thought. Does anyone know how, if at all, pilots' and FA's pensions will be effected if this type of asset transfer occurs? Any provisions in terms of "change of control"? If so, this could likely be a collaboration between AMR and this firm to force retirements, allowing AMR to get what they often call " industry highest labor costs" under control. Thoughts?

....all of a sudden that 401k match and profit sharing account ain't looking so bad....

 

[GuppyWN]

Allegiant

Gup

 

[LAHSOinMIA]

check your calendar...

What do you know, April 1st came early this year.

 

[glasspilot1]

Ahh, LAHSO, I just was going to mention the date, you just beat me to it!

 

[LearLove]

This has been floating around the internet for a few days now. I read somewhere else that AMR reported that are "suspicious" of the offer.

 

[satpak77]

http://www.star-telegram.com/2011/05/04/3051148/feds-sue-florida-man-who-said.html

If you offer to buy an airline for $3.25 billion but don't really have the money to do the deal, the government is going to notice.
On Tuesday, the Securities and Exchange Commission filed a civil complaint against Florida resident Allen Weintraub, citing "false and misleading" offers to buy American Airlines' parent company, AMR Corp., as well as Eastman Kodak Co. of Rochester, N.Y.
The suit, filed in a Florida federal court, says Weintraub violated several federal securities regulations, attempted fraud and "made untrue statements" in his buyout offers. One of Weintraub's violations, the suit says, was not revealing that he is a felon on probation for fraud in Florida and has not paid a "nondischargeable prior judgment in favor of the SEC in the amount of $1,050,000."
In March, Weintraub sent a letter to Fort Worth-based AMR offering to buy all outstanding stock for $3.25 billion, a 50 percent premium over AMR's closing price at the time. He said his firm, Sterling Global, had banks lined up to finance the deal so he could take AMR private.
A week earlier, he made a similar offer to take over Kodak for $1.3 billion.
AMR was suspicious of the offer, saying it couldn't confirm whether Sterling Global was a legitimate investment company or a shareholder. The Star-Telegram obtained a photo of the "global headquarters" of Sterling Global, which appeared to be a small office center in Davie, Fla., in the Miami area, that housed Weintraub's attorney but no firm named Sterling Global.
Apparently SEC investigators were skeptical of the offer as well.
According to the suit, SEC staffers interviewed Weintraub, who named three commercial banks that he said agreed to provide letters of credit to finance the deal.
"None of the banks Weintraub identified as sources of financing for the tender offers agreed to provide any financing to him or Sterling Global," the suit says. It says the SEC has "no reasonable basis to believe that [he] could obtain the approximately $4.5 billion in financing required to complete the tender offers."
Weintraub did not return calls Wednesday seeking comment on government's suit.
AMR said Wednesday that it received two letters from Weintraub but does not believe the offers are legitimate.
"We have referred the matter to the Securities and Exchange Commission, and their lawsuit certainly speaks for itself," AMR spokesman Tim Smith said.

Read more: http://www.star-telegram.com/2011/05/04/3051148/feds-sue-florida-man-who-said.html#ixzz1LvbTuRx1
​

 

[HA25]

anyone ever hear of Texas Air?