Tuesday, December 26, 2006

Icelandic Investment Company FL Group Discloses Nearly 6% Stake in AMR Corp (AMR)

In a 13G filing (passive stake) on AMR Corporation (NYSE: AMR), Icelandic investment company FL Group disclosed a 5.98% stake (12.8 million shares), making it the third largest shareholder in the airline.

In a statement, FL Group said it has been building its stake for a considerable period of time and the total investment exceeds US $400 million.

FL Group is known for its investments in airline industry, which represents approximately 25% of its total assets. On its easyJet stake, the company made a profit of US $190 million when it was sold in April 2006 and on its stake in Icelandair, FL Group made a profit of US $400 million in October 2006.

Hannes Smarason CEO of FL Group said: "We believe AMR Corp. is well positioned to take advantage of the growing US air travel market. The supply-demand balance has improved considerably over the last several years and the company enjoys one of the best positions in the industry to take advantage of that as well as to build auxiliary revenues. We are excited about this investment."

Afternoon reports from FT.com, said the group plans to request a meeting with the company's management.

NOTE: The stake was reported earlier at our main site in the 13G section. You can track more 13G here: http://www.streetinsider.com/13Gs

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