American Airlines declares preferred stock purchase right for shareholders as part of tax benefit preservation plan

American Airlines Group Inc.
AAL,

said Wednesday its board of directors adopted a tax benefit preservation plan to help preserve the value of its net operating losses and other tax attributes. The carrier said its cumulative U.S. federal net operating loss carryforwards exceed $16.5 billion, which can be used to reduce future U.S. corporate income tax liabilities. As part of the plan, the American Airlines board declared a dividend of one preferred stock purchase right for each outstanding share of American Airlines common stock. The dividend will be payable to holders of record as of the close of business on January 5. The rights will be exercisable if a person or group, without the approval of the American Airlines Board, acquires, or obtains the right to acquire, beneficial ownership of 4.9% or more of American Airlines common stock, the company said. Shares of American Airlines are up 14.9% this year.