Qatar Airways seeks stake in American

Associated Press

DALLAS

State-owned Qatar Airways is attempting to buy 10 percent of American Airlines, a surprising move that would trigger an antitrust review by the U.S. government and carry political and trade-policy implications.

American said in a regulatory filing Thursday that the bid was unsolicited.

“We aren’t particularly excited about Qatar’s outreach,” CEO Doug Parker said in a memo to employees. He said the move was “puzzling” given American’s ongoing fight with Qatar and other Middle Eastern airlines over government subsidies, which he vowed to keep pursuing.

Qatar Airways, however, said it sees a “strong investment opportunity” in American and plans to be only a passive investor with no role in management or operations.

Qatar said it plans to buy an initial stake of up to 4.75 percent of American’s shares. American, the world’s biggest airline, said that Qatar CEO Akbar Al Baker told Parker that he wanted to acquire about 10 percent of American’s stock in all, which would cost about $2.4 billion at American’.

The CEOs met earlier this month during an airline-industry event in Mexico, according to an American spokesman.

Federal law prohibits foreigners from owning 25 percent or more of the voting shares in a U.S. airline. American said Qatar Airways submitted a filing under the Hart-Scott-Rodino Act, which is subject to review by the Justice Department’s antitrust division.

American Airlines said its policies require approval by its board before anyone can buy 4.75 percent or more of its shares. The company said Thursday that it had not yet received a formal request from Qatar Airways.

Al Baker is known for brash moves and declarations. His company has bought its way into other airlines, including the parent of British Airways, a close partner of American.

American, Delta Air Lines and United Airlines are in a nasty dispute with the three major airlines operating out of the Middle East, which have cut into lucrative international routes for the U.S. and European carriers.