AMR reaches definitive agreement to sell American Beacon to Lighthouse Holdings

Airline Industry Information, April 17, 2008

AIRLINE INDUSTRY INFORMATION-(C)1997-2008 M2 COMMUNICATIONS LTD

A definitive agreement to sell wholly-owned asset-management subsidiary American Beacon Advisors Inc, has been reached by AMR Corporation, the parent company of American Airlines Inc, to Lighthouse Holdings Inc, which is owned by investment funds affiliated with private equity companies Pharos Capital Group, LLC and TPG Capital.

AMR said it will receive total consideration of around USD480m in a primarily cash transaction, while retaining a minority equity stake in the business.

The sale is expected to be closed this summer, subject to 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, along with satisfactory completion of customary closing conditions.

According to AMR the sale is in the best interests of the company and its shareholders and will benefit American Beacon, its employees, customers and other stakeholders. It claimed the sale will enable AMR and its shareholders to recognise the full value of American Beacon, allowing AMR to concentrate on its main airline business,

AMR said it expects to continue its relationships with American Beacon after the closing, although an independent third party will be used to review and approve any continuing relationships to ensure they satisfy fiduciary duties and other rules.

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