Investment Fund Sells AMR Shares to Cash In on Bid

A major institutional investor in AMR Corp. said Tuesday that it has sold all its shares to take advantage of inflated stock prices in the wake of Donald J. Trump’s $7-billion buyout proposal for the company that owns American Airlines.

Since last Thursday, when Trump’s $120-per-share offer was made public, Windsor Fund has sold its 425,000 shares, said John B. Neff, who has managed the fund for 25 years. “We’re out as of yesterday,” Neff said Tuesday.

Meanwhile, little additional information emerged on Trump’s bid, revealed last Thursday in a letter to the company.

Stock Falls

Trump said in New York that he was serious about acquiring the airline, although he would not reveal any details of his financing. Trump also said he would leave the airline’s headquarters in Ft. Worth.

AMR’s stock fell in trading in the New York Stock Exchange, closing down $3.25 a share at $101.50, reflecting speculation that Trump’s offer is a ploy to increase the value of his AMR stock and not a serious offer for the airline.

“I have a hard time taking Mr. Trump seriously. One hundred twenty dollars is a very full price, and I don’t know where the financing is going to come from,” Neff said. “This isn’t loose change.”

At one time, the Windsor Fund held 4 million shares of AMR stock, and airline said in its annual report that institutional investors hold about 80% of its 58.9 million outstanding shares.