FL Group Divests AMR Stock

Clearly Iceland-based FL Group, which has been pressuring AMR to increase shareholder value, was unimpressed with AMR’s move to put Eagle on the block as it sold nearly all of its interest in the company. It divested eight of its 9.1 percent direct and indirect interest. In September the group sent a letter to AMR’s board urging it to unlock more shareholder value. While AMR was receptive, it has been unable to move fast enough given high fuel prices and a downturn in the economy causing share prices to fall. FL Group criticized AMR’s announcement of the Eagle sale for the lack of details and timing of any transaction and the valuation of Eagle.