Qatar Airways seeks to buy up to 10% stake in American Airlines
Airways, its Middle Eastern business pressured by a diplomatic row with neighbours, is seeking as much as a 10% stake in American Airlines, the US carrier said.
The surprise investment push was disclosed by American Airlines in a securities filing on Thursday, saying the Qatari company planned to buy at least $808 million in American shares. In addition, Qatar Airways’s chief executive told his counterpart at American that the carrier sought a stake of about 10%.
The outreach drew a frosty response from the US carrier, which said the proposal “was not solicited by American Airlines and would in no way change the company’s board composition, governance, management or strategic direction” — US bylaws require board approval to stakes of 4.75% or more.
“Qatar Airways sees a strong investment opportunity in American Airlines,” the company said in a statement.
The move comes after Saudi Arabia, Bahrain, Egypt and the UAE severed ties with Qatar over its alleged support for extremist groups and Iran. The countries have suspended all flights to and from Qatar.
Qatar Airways has downplayed the impact of the dispute on its business, saying on June 14 that the “vast majority” of its network was unaffected. But analysts have warned the profitable carrier could take a hit should the diplomatic crisis drag out. AFP