AMR to Sell American Beacon Advisors to Lighthouse Holdings

AMR Corporation, a company engaged in the airline industry, has reached a definitive agreement to sell American Beacon Advisors, its wholly owned asset-management subsidiary, to Lighthouse Holdings, which is owned by investment funds affiliated with private equity firms, Pharos Capital Group and TPG Capital.

AMR will receive total consideration of approximately $480 million. While primarily a cash transaction, AMR will retain a minority equity stake in the business.

AMR expects to close the sale in summer 2008, subject to satisfactory completion of customary closing conditions as well as the approval of the board of trustees of the American Beacon family of mutual funds, shareholders of the American Beacon family of mutual funds, and consents from other American Beacon clients.

AMR believes that the sale is in the best interests of AMR and its shareholders and will benefit American Beacon, its employees, customers and other stakeholders.

The sale is intended to allow AMR and its shareholders to recognize the full value of American Beacon while allowing AMR to focus on its core airline business. AMR anticipates that it will continue its relationships with American Beacon after the closing.

Subject to the approval of the shareholders of the American Beacon family of mutual funds, it is anticipated that American Beacon will continue to be investment manager for the mutual funds.

Credit Suisse advised AMR on the transaction and Rothschild continues to advise AMR in its ongoing strategic value review. Merrill Lynch acted as the exclusive financial advisor to Pharos Capital and TPG Capital.

Kneeland Youngblood, co-founder and managing partner of Pharos Capital, said: “Pharos and TPG believe that the asset management business is a robust sector, in which American Beacon is a strong leader, with an outstanding, 20-year track record of performance in multiple asset classes across a variety of investment cycles.”