Hong Kong Comclomerate buys 7.3% of AMR
- Thread starter FA Mikey
- Start date
Frank Szabo
Veteran
- Joined
- Aug 20, 2002
- Messages
- 7,319
- Reaction score
- 1,555
This is not a good omen.
It reminds me of the Saudi prince who bought 5% of TWA in 1997.
These sharks know vulnerable prey is in the water.
A BA takeover of AMR may look good after these new sharks make their intentions known.
Better Cousin Willie than Uncle Carl.
Tater Salad
Member
- Joined
- Jun 2, 2011
- Messages
- 93
- Reaction score
- 82
Unsubstantiated comment on the bottom of the news page, very interesting...
Quek Leng Chan, Malaysia (QLC) acquired 24,393,117 shares of AMR common stock on August 01, 2011 which represents 7.3% of the outstanding shares. However, if you read the SEC form 13G filing, you will find that 7 other companies, which are owned or controlled by Gouco Group/Hong Leong, which is run by Mr. Quek Leng Chan, acquired shares on the same day. The total shares acquired by these 8 Guoco Group/Hong Leong companies amounts to 33.4% of AMR common stock
The person writing that comment doesn't understand how SEC reporting rules work. Reading the Form 13G, the total shares held equal 24.4 million, or 7.3% of the outstanding stock. The writer of the comment added the same shares together multiple times to arrive at their mistaken total.
Frank Szabo
Veteran
I will, eventually, look up the SEC filing (Forms 13 and 4) but want to ask a few quick questions of whoever might know - depending on how badly the shareholders are broken up, what might a controlling interest in AMR amount to?
A few mutual funds (institutional holders) were carrying AMR on their books - did one or some of them sell out at a loss or was the stock purchased by the Hong Kong group of new issue ("offering new shares from time to time" per SEC papers) - ie, were the already outstanding shares further diluted in value by new paper or did this group take some bad investments off others' hands?
... and, is there any way to find the answers to these questions if nobody knows?
Finally, should we, as employees, brush up on asian/oriental-type courtesies - might this purchase be a pattern of things yet to come?
Hong Kong businesspeople have gotten where they are now by their business abilities and access to cheap labor and not through luck, as what seems to keep American Airlines afloat now. Luck only applies to having not been attacked by communist China - YET.
These people, as a whole, are not accustomed to tossing their money in a pit - they're not as unsavvy as the Arabs in business matters (TWA) so has anybody some thoughts as to their underlying motivations?
Dunno the answers to most of Frank's questions except for one: I'd bet my house that AMR did not sell this guy newly issued stock at less than $4/sh over the past few weeks. He (and/or his companies) acquired already-issued stock on the open market. Dunno whose stock he acquired. AMR has about 300 million shares outstanding
Federal law prohibits a takeover of AMR by foreigners, so no need to worry there unless you think Congress is on the cusp of changing the foreign ownership limits.
Federal law prohibits a takeover of AMR by foreigners, so no need to worry there unless you think Congress is on the cusp of changing the foreign ownership limits.
Frank Szabo
Veteran
Congress will do what the highest bidder tells them to do, assuming they believe they can get away with it and still be reelected.
As for the other questions, I suspect I'll have to do a helluva lot of research to get any answers re: this "investment". It actually sounds like this fellow is looking for a sure-fire loss to modify his group's income for tax purposes.
The word to underline in this article is LONDON as in BA, maybe another one of Cousin Willie's friends?
Frank Szabo
Veteran
Even if it is a bud of Willie's, more stock will have to be purchased in order to drive the status quo out of their comfort zones and make AMR work like a corporation trying to make a profit rather than make simple appearances of doing so as has been the case with the BOD and AMR's management.
With a full 25% foreign ownership, that may be a large enough bloc to get some attention from the BOD but presently, all are just too damned comfortable and snug in their personal cow patties - ie, even though all stockholders will admit their situation stinks, it's "cold" outside and they might be exposed to the weather if they crawl out.
