AMR to Sell Additional Shares

AMR Corp., the parent of American Airlines, said Monday it will sell 13 million new shares of stock, with underwriters holding options to buy up to another 1.95 million shares.

If all the potential new shares are issued, they would amount to just over 6 percent of the company's current outstanding shares and options. They could bring in nearly $600 million based on AMR's closing stock price Monday.

AMR said it would use the proceeds for general corporate purposes.

Shares of AMR hit a 52-week high of $41 last week. On Monday, they fell 57 cents to close at $40.09 in regular trading on the New York Stock Exchange, then were off another $1.12 or 2.8 percent in late trading after AMR announced the stock plan.

Last week, Fort Worth-based AMR reported a profit of $231 million for 2006, its first annual profit since 2000.

Credit Suisse Securities (USA) LLC, UBS Investment Bank and Merrill Lynch & Co. are acting as underwriters for the offering, AMR said.

The company, which also owns the American Eagle regional carrier, said it expects to grant underwriters a 30-day option to buy up to 1.95 million shares beyond the initial 13-million-share offering in case of over-allotments.

The company reported that it had 247 million fully diluted shares on Dec. 31.

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