AMR hires Merrill to sell up to $300M in stock

FORT WORTH, Texas

American Airlines parent AMR Corp. said Friday it has hired Merrill Lynch & Co. to sell up to $300 million in stock.

The sale of stock "from time to time" will be made at market prices on the New York Stock Exchange, AMR said in a filing with the Securities and Exchange Commission.

At Friday's closing price, AMR stock had a market value of about $2.6 billion.

The shares rose 84 cents, or 8.7 percent to $10.52, in regular trading before the sales agreement was disclosed, as airline stocks benefited from a drop in oil prices. In extended trading, they fell 3 cents, to $10.49.

Fort Worth-based AMR previously filed a shelf-registration statement to sell the shares with the SEC in 2006.

Review of Markets for the week

Review of Markets for the week 24 Aug, 2008, 0000 hrs IST, ET Bureau

Markets in bear grip, Sensex dips 323 pts The Bombay Stock Exchange bellwether Sensex extended its weekly losses as the US mortgage crisis re-emerged exerting pressure on global markets in the week under review. The BSE 30-share sensitive index moved widely in a range of 14,824.92 and 14,136.86 before ending the week at 14,401.49, netting a fall of 322.69 points or 2.19 per cent from the previous weekend’s close.In the absence of domestic trigger, the markets were largely influenced by global developments, including a gradual upward movements in crude oil prices, besides sustained capital outflows from the Indian equity. Similarly, the 50-share Nifty of the National Stock Exchange tumbled by 103.25 points, or 2.33 per cent, to close at 4,327.45 from its last week-end’s close.Analysts said, the domestic bourses came under pressure as global markets were hit during the week by fresh concerns about the mortgage crisis that re-emerged after speculation of a need to bailout two largest US home finance groups — Freddie Mac and Fennie Mae.On the domestic front, they said, a fresh rise in inflation and crude oil prices caused concerns that the Reserve Bank may initiate further monetary measures to contain inflationary pressure. Inflation ascended to 12.63 per cent, while global crude oil prices surged past the $121 a barrel level on Friday. Foreign institutional investors too were net sellers in the week, particularly after SEBI’s decision of not changing the curbs imposed on Participatory Notes in its meeting in the preceding week.Heavyweights like the largest public sector bank SBI plunged 7.68%, Satyam Computer 6.19%, Grasim 6.19%, NTPC 6.11%, ICICI Bank 4.27%, ONGC 4.74% and Reliance Communications 4.28%.The broader BSE-100 Index dropped sharply by 189.87 points, or 2.46% to end at 7,524.31 from last weekend’s close of 7,714.28. The BSE-200 Index and the Dollex-200 were also quoted lower at 1,761.45 and 674.79 at the weekend compared to their last weekend’s close of 1,804.57 and 700.82, respectively.On the NSE, the S&P CNX Defty finished lower by 128.50 points or 3.59% at 3,451.40 and the CNX Nifty Junior concluded the week at 6,956.50, a loss of 217.10 points or 3.03%.Among the sectoral indices, the BSE Realty Index was the biggest loser with a fall of 218.80 points or 4.24%, followed by the BSE PSU Index, which lost 275.91 points or 3.95%. The Bankex also tumbled by 247.20 points or 3.58%.