Qatar Airways is looking to invest in American Airlines, according to CNBC.
American recently received an unsolicited offer from the Middle Eastern carrier that it intends to purchase at least $808 million in the U.S. airline.
Qatar said it plans to make an initial investment of up to 4.75 percent and will not exceed that figure without the prior consent of the American Airlines board.
According to CNBC, Qatar intends to then acquire at least a 10 percent stake.
"Qatar Airways sees a strong investment opportunity in American Airlines. Qatar Airways believes in American Airlines' fundamentals and intends to build a passive position in the company with no involvement in management, operations or governance," the airline said in an emailed statement on Thursday.
American confirmed that in its own statement.
Qatar went on to say that it has "long considered American Airlines to be a good Oneworld Alliance partner and looks forward to continuing this relationship."
Qatar intends to purchase the stock on the open market, and American points out that foreign ownership laws limit the total percentage of foreign voting interest in its business to 24.9 percent. American's board would have to approve an acquisition of more than 4.75 percent, but Allied Pilots Association spokesman Capt. Dennis Tajer is skeptical of the offer.
"While this move may be legal, it is not only odd but certainly inappropriate," Tajer told CNBC. "We take this as financial aggression. It runs completely against the fiber of American Airlines and must be looked at as more than just a simple investment."
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The offer is indeed shocking considering American CEO Doug Parker has been a vocal opponent of Gulf carriers like Qatar in the ongoing Open Skies debate. American said the offer came after a recent conversation with Parker and Qatar CEO Akbar Al Baker initiated by the latter.
"It also does not alter American Airlines' conviction on the need to enforce the Open Skies agreements with the United Arab Emirates and the nation of Qatar and ensure fair competition with Gulf carriers, including Qatar Airways," American said in a statement via CNBC.
"American Airlines continues to believe that the President and his administration will stand up to foreign governments to end massive carrier subsidies that threaten the U.S. aviation industry and that threaten American jobs."
Qatar has made recent acquisitions in South America's LATAM Airlines Group and Italy's Meridiana and is the largest shareholder in International Consolidated Airlines Group SA, which owns British Airways.
CNBC reported American shares climbed by more than 5 percent Thursday morning. Other airline stocks rose as well.
Thursday's news comes just weeks after Saudi Arabia, the United Arab Emirates and Bahrain cut diplomatic ties to Qatar citing the country's alleged funding of terror groups. This has also meant Qatar Airways has been unable to fly to, from or across the aforementioned nations.
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