AMR has begun planning the divestiture of its American Eagle regional subsidiary amid calls for asset sales by shareholders disenchanted with the company’s recent stock market performance. Although AMR doesn’t attribute the decision directly to pressure from investors, the November 28 announcement immediately preceded a 6.9-percent jump in share price. However, the climb proved temporary, as shares fell again in the following weeks, at press time closing down more than 30 percent on the year.
The divestiture, planned for sometime this year, might include a spin-off to AMR shareholders, a sale to a third party or some other form of separation, according to the company. “The completion of any transaction and its timing will depend on a number of factors, including general economic, industry and financial market conditions, as well as the ultimate form of the divestiture,” said AMR in a statement.
