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Wednesday, November 25, 
3:40 am

American Beacon sale not a sign of pending AMR deal

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American_Air_A300.jpgWithout doubt American Airlines Inc., along with nearly everyone else in the industry, is considering its options in the wake of Delta Air Lines Inc.'s $3.6 billion stock deal for Northwest Airlines Corp. But more likely than not, the company's Wednesday announcement it is selling 90% of its asset management business is not, as some have suggested, a sign that a deal is in the works.

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The problem with such reasoning is that American parent AMR Corp. has weighed selling its American Beacon Advisors unit for years and ramped up explorations last fall after shareholder FL Group hf suggested the Fort Worth-based company look to divestitures to unlock value. Other assets remain on the block, including the company's regional airline affiliate.

American, which faces growing tensions with its pilots and other laborers and could potentially wind up a bankruptcy threat in the next 12 to 18 months if oil prices stay at current highs, is perceived as a difficult partner as airline dealmaking heats up and could prefer seeking divestitures instead of a merger of its own. But regardless of what role it takes in the current round of industry consolidation, expect AMR to continue to seek buyers for some of its assets. - Lou Whiteman

See TheDeal.com story TPG, Pharos buy AMR's asset manager

See Deal Journal post American Airlines: Preparing for a Sale

See TheDeal.com story AMR flies into pressure

See TheDeal.com story AMR to sell American Eagle





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