A little-known Florida firm offered to buy American Airlines'

[TWU informer]

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.


http://www.star-telegram.com/2011/03/29/2959345/amr-skeptical-of-little-known.html

UPDATE: Here is what AMR had to say about the letter: "On March 29, 2011, AMR Corporation, the parent company of American Airlines, Inc., received a letter from Sterling Global Holdings. AMR Corporation is investigating the matter, but at this time we have no corroborating information to demonstrate the offer described in the letter is legitimate. Prior to receiving the letter, AMR had never heard of Sterling Holdings. We have not been able to confirm whether Sterling Global Holdings is a shareholder of AMR."

 

[Interested]

Didn't something similar happen years ago? Drove the stock price up to over $100.00 then walked away. I can't remember who it was though.

 

[Hopeful]

Didn't something similar happen years ago? Drove the stock price up to over $100.00 then walked away. I can't remember who it was though.

Donald Trump offered to buy AMR....1989.

 

[Hopeful]

Maybe the secret buyers are World Traveller, FWAAA and Frequent Flyer 2.0!
They have been "Gloomin and Dooming" AMR painting the worst possible pictures of AMR's financial situation.
Maybe they have been trying to drive the stock price down in order to make an offer!

STERLING..............
Some
Types
Emphatically
Relate
Lousy
Incorrect
News
Gossip

 

[TWU informer]

Maybe this is just a stock holder tired of waiting for his stock to rebound for a profit.
Start a big rumor of sale and when the stock rises get out.

Performance is so dismal there needs to be change at the top.
Hiring Consulting Firms and blaming Labor is not getting the job done.

 

[Interested]

Donald Trump offered to buy AMR....1989.

That's it, I just couldn't remember his name.

 

[AAStew]

It could also be one of our execs trying to drive up the price of our stock just in time for their payout... B)

 

[TWU informer]

A $3.25 Billion Offer for AMR is a 48% premium over a closing share price of $6.58.

Yet AA has ordered 42 Boeing 787's worth a list price of $8 billion
http://www.reuters.com/article/2008/10/15/us-amr-boeing-idUSTRE49E6XG20081015

How can a company that has a pending order of $8 billion worth of aircraft be so under valued in stock?

A $3.25 billion offer for AMR is a steal. And yet the offer is a 48% premium over the stock value driven down by ignorant management using skewed financial reporting procedures to maximize manipulation.

Why wouldn't a small Florida firm be able to obtain the financing for such a take over?
If not this company. Then there will surely be another at that price.

One of the biggest risk of playing the game this way is a take over and we might be about to watch it happen.

Go ahead and take the company private. We would all be better off.

 

[B737NG]

A $3.25 Billion Offer for AMR is a 48% premium over a closing share price of $6.58.

Yet AA has ordered 42 Boeing 787's worth a list price of $8 billion
http://www.reuters.com/article/2008/10/15/us-amr-boeing-idUSTRE49E6XG20081015

How can a company that has a pending order of $8 billion worth of aircraft be so under valued in stock?

A $3.25 billion offer for AMR is a steal. And yet the offer is a 48% premium over the stock value driven down by ignorant management using skewed financial reporting procedures to maximize manipulation.

Why wouldn't a small Florida firm be able to obtain the financing for such a take over?
If not this company. Then there will surely be another at that price.

One of the biggest risk of playing the game this way is a take over and we might be about to watch it happen.

Go ahead and take the company private. We would all be better off.

I read the following article from the airlinebiz blog and this guy just doesn't sound legitimate at all..

http://aviationblog.dallasnews.com/archives/2011/03/we-talk-about-amr-deal-with-ho.html

 

[TWU informer]

I read the following article from the airlinebiz blog and this guy just doesn't sound legitimate at all..

http://aviationblog.dallasnews.com/archives/2011/03/we-talk-about-amr-deal-with-ho.html

I dont read that he doesnt sound legitimate in what he is doing.

He might be a predator, but that is what happens when a corporation is so under valued as AMR is in stocks.
Prime target for take-over by a group of investors that see the real value in the corporation.

A group of investors could take-over AMR and sell the pieces for 10 times the value of the stock.

When a corporation runs along claiming constant losses while building assets then they become a target for such characters.

If you meant he doesn't sound like a legitimate Airline Industry guy I bet you are correct but I do think he and his investors could be rightfully about to purchase an extremely under valued corporation for cheap, regardless of what they intend to do with it.

 

[FWAAA]

Nobody's ever heard of the firm:

http://blogs.wsj.com/deals/2011/03/30/the-weird-non-takeover-offer-for-american-airlines/?mod=yahoo_hs

In addition, the spokesman for the firm, Weintraub, has a criminal record for investment and insurance fraud:

http://query.nytimes.com/gst/fullpage.html?res=9401EFD7123AF935A25751C0A9659C8B63&pagewanted=all

http://www.stockpatrol.com/article/key/u_vector2

This alleged buyout offer is no more real than the airliners.net teenagers who claimed that they were assembling a counter offer for the TWA assets in early 2001.

 

[MCI transplant]

<_< ------ Or could it be Carl Icahn!!! :huh: He did it once! He could be looking to do it again!!!? Or someone like him! -----Something to think about!

 

[FWAAA]

I dont read that he doesnt sound legitimate in what he is doing.

He might be a predator, but that is what happens when a corporation is so under valued as AMR is in stocks.
Prime target for take-over by a group of investors that see the real value in the corporation.

I'm confused as to why you think that AMR common stock is undervalued. You're about the only person making that claim.

A group of investors could take-over AMR and sell the pieces for 10 times the value of the stock.

When a corporation runs along claiming constant losses while building assets then they become a target for such characters.

Uhh, if other investors could break up AMR and net 10 times the current stock price by doing so, then don't you wonder why Arpey and Horton haven't taken advantage of that turn crap into gold method? If AMR is worth $69/sh (instead of the $6.85/sh current price) as you claim, then the board would have already authorized Arpey to do what you claim these outside investors could do.

You don't really believe that AMR stock is undervalued, do you? The company has turned in two small profitable years since 2000 and the total of those two profits is dwarfed by most of the annual losses in the other ten years. Stock prices generally reflect the present value of the stream of anticipated future profits. Since future profits appear unlikely at AMR, its stock price has been trending toward bankruptcy-levels. And yet you think the stock is undervalued?

 

[TWU informer]

I'm confused as to why you think that AMR common stock is undervalued. You're about the only person making that claim.



Uhh, if other investors could break up AMR and net 10 times the current stock price by doing so, then don't you wonder why Arpey and Horton haven't taken advantage of that turn crap into gold method? If AMR is worth $69/sh (instead of the $6.85/sh current price) as you claim, then the board would have already authorized Arpey to do what you claim these outside investors could do.

You don't really believe that AMR stock is undervalued, do you? The company has turned in two small profitable years since 2000 and the total of those two profits is dwarfed by most of the annual losses in the other ten years. Stock prices generally reflect the present value of the stream of anticipated future profits. Since future profits appear unlikely at AMR, its stock price has been trending toward bankruptcy-levels. And yet you think the stock is undervalued?

I am not talking about your one sided view regarding stock price and stock value pricing.

I am talking about selling material assests piece by piece. You know dismantle like AA did TWA, Air-Cal, and Reno Air.
The value of the company assets does ineed make it undervalued in stock value.

Now I know your at the management alter and brain washed in typical stock value and SEC Filings, but think outside the box like someone with less than typical intentions.

In other words pull out of managements ass a little bit and think like a crook.

 

[FWAAA]

I am not talking about your one sided view regarding stock price and stock value pricing.

I am talking about selling material assests piece by piece. You know dismantle like AA did TWA, Air-Cal, and Reno Air.
The value of the company assets does ineed make it undervalued in stock value.

Informer, I sincerely apologize. I was under the mistaken impression that you knew how to read a balance sheet. Your posts in this thread clearly demonstrate how foolish I was to make that assumption.

AMR's total assets are approximately $25 billion. AMR's total liabilities equal about $29 billion. Here's a link to the AMR 10-K; the balance sheet can be found on pages 51-52 (internal document page numbers) - pages 53-54 of the .pdf document:

http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9NDE0MjE5fENoaWxkSUQ9NDI1NzYxfFR5cGU9MQ==&t=1

AMR's assets are pledged as collateral to secure much of AMR's long-term debt. So how do you propose selling the pieces and not paying the corresponding liabilities? Are you similarly able to sell your house, pocket the cash and not pay your mortgage? If so, you should try that. Make sure the buyer pays you in cash. If it works, you should head over to your local Ford or GM dealer and buy a new truck with 10% or even 20% down. Then turn around and sell the truck and not pay the lender. Trust me, they won't mind.

Now I know your at the management alter and brain washed in typical stock value and SEC Filings, but think outside the box like someone with less than typical intentions.

In other words pull out of managements ass a little bit and think like a crook.

Whenever I conclude that you're incapable of discussing something like an adult, without namecalling, you always come thru and never disappoint.