AMR 'could face bidding war'
Reuters has reported that many firms intend to acquire AMR.
Delta Airlines, US Airways Group and TPG Capital could be considering pursuing negotiation strategies, as it has been reported they all intend to acquire American Airlines parent firm AMR.
Sources close to the situation told Reuters that any purchase will be expected to come according to AMR's own conditions, but a bidding war is likely to happen,
The enterprise has exclusive rights to submit its own reorganisation proposals within 18 months due to bankruptcy laws, which makes it difficult for other companies to undertake a merger if AMR is unwilling.
Furthermore, British Airlines would consider making a minority investment as it intends to protect its dealings with AMR and would like to strengthen the bonds between the two businesses, separate sources told the news provider.
It has no intention of being purchased by Delta, US Airways or similar competitors and is currently focused on reducing its liabilities and expenses, AMR representatives told the publication.
Discussing changes to pensions in a recent employee bulletin, senior vice-president of human resources Jeff Bundage said any decision made in this area will be part of a "comprehensive business plan aimed at making American Airlines a successful and profitable company".
Posted by Edel Quinn
Source: Reuters, January 24th