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Iceland Firm Boosts AMR Stake

FL Group is now the company's biggest shareholder.
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Iceland's FL Group says it now holds 8.63% of the shares of American Airlines parent

AMR

(AMR)

, making it the largest shareholder of the world's biggest passenger carrier.

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FL Chief Executive Hannes Smarasson informed shareholders of the increased holding at the company's annual meeting Thursday. On Dec. 26, FL Group said it had acquired 5.98% of AMR's shares.

"Since the announcement, FL Group has continued to build its stake in the company," FL said in a press release.

"Having owned Icelandair and Sterling Airlines, Scandinavia's largest low-cost carrier, and 16.9% in British low-cost carrier easyJet, FL Group has significant experience in being a shareholder in household-name air carriers," the release said.

The company currently owns 22.4% of Finnair, the flag carrier of Finland.

"We remain very excited about this investment," Smarason said in the release. "We have been following the airline industry in the United States and we believe AMR Corporation presents strong prospects for 2007."