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Qatar Airways is reportedly looking to acquire a 10 percent stake in American Airlines (OTCMKTS:AAMRQ).
In a regulatory filing, American Airlines said Qatar intended to purchase at least $808 million (£638 million) of its shares.
American Airlines has said it would respond “in due course” to the offer.
According to American Airline’s certificate of incorporation, no investor can acquire more than 4.75 percent of stock without formal approval form the board.
In addition, there a restrictions on foreign ownership which mean that no foreign investor can own no more than a 24.9 percent stake.
In a filing to the SEC, American Airlines said:
“The proposed investment by Qatar Airways was not solicited by American Airlines and would in no way change the company’s board composition, governance, management or strategic direction. It also does not alter American Airlines’ conviction on the need to enforce the Open Skies agreements with the United Arab Emirates and the nation of Qatar and ensure fair competition with Gulf carriers, including Qatar Airways.”
This follows an announcement on Tuesday, which revealed that Qatar Airways had been awarded the World’s Best Airline in 2017 at the SKYTRAX World Airline Awards. This will be the fourth time that the air-carrier has secured the honour.
Alongside the World’s Best Airline Award, Qatar Airways also received awards for the World’s Best Business Class, the World’s Best First Class Lounge and as the Best Airline in the Middle East.
Conversely, Qatar’s Airways latest investment interest, AA did not feature on the top twenty of the list.
Back in March of this year, American Airlines acquired a £159 million stake in China Southern, which is China’s largest air carrier.
In a statement on the investment, China Southern stated in a filing that the deal will “achieve the strategic goal of building a world-class aviation industry group.”
Amid the speculation, shares in American Airlines soared during pre-market trading.