New York developer Donald Trump Thursday made an unsolicited $7 billion proposal to acquire AMR Corp., the parent of American Airlines, AMR announced.
A buyout at the price proposed by Trump, if actually completed, would be the biggest airline purchase ever.American spokesman Al Becker said the company had received a "unilateral unsolicited letter" proposing a $120 a share buyout by Trump, who bought Eastern Airlines' Northeast shuttle service in March for $365 million.
After an initial trading delay, AMR stock opened at $107 a share on the New York Stock Exchange, up sharply from its Wednesday close of $82.75. The shares had settled back to $102.50 by around midday.
With 58.9 million outstanding common shares of AMR stock, a $120 a share offer would be worth more than $7 billion.
The biggest airline buyout ever was an investor group's $3.65 billion purchase of NWA Inc., parent of Northwest Airlines, earlier this year. A group led by United Airlines pilots and senior management has offered to buy that carrier's parent, UAL Corp., for $6.75 billion but the proposal remains pending.
AMR has been the focus of heated takeover speculation recently and last week asked the Securities and Exchange Commission to investigate financial wire reports about takeover rumors.
AMR's board of directors will consider Trump's offer "in due course," Becker said from AMR headquarters in Fort Worth.