AMR Prices $400 Million Stock Offering

FORT WORTH, Texas – AMR Corp., the parent of American Airlines, said Tuesday it has priced a public offering of $400 million in newly issued shares at $26.80 per share.

The offering will dilute AMR’s current shares by more than 7 percent.

Shares of AMR fell $2.03 or 7.4 percent, to close at $25.60 Tuesday on the New York Stock Exchange.

Fort Worth-based AMR had about 196 million shares as of May 11, and the offering will include about 15 million new shares, a spokesman said.

AMR said it will also give underwriter Merrill Lynch & Co. 30 days to buy up to 2.25 million additional shares to cover over-allotments.

The company said it plans to use the money for general corporate purposes, and expects the shares to be issued and delivered on Friday.