Icahn May Sue AMR Over TWA Contract

Financier Carl Icahn is threatening to sue AMR Corp.’s American Airlines to preserve a lucrative contract he has with Trans World Airlines Inc., adding another potential obstacle to American’s planned buyout of TWA. “We’re focused on a number of different alternatives. Principal among them is a suit against American Airlines” for interfering with the contract, under which Icahn buys discounted tickets from TWA for resale, Ed Weisfelner, Icahn’s lawyer in the TWA bankruptcy case, said. Weisfelner said the lawsuit would involve “multibillion-dollar” claims against American, the world’s second-largest airline, which has agreed to buy TWA for $500 million in cash and the assumption of $3 billion in aircraft leases. AMR fell $1.63 to close at $36.81 on the NYSE.