SABRE INC. SPINOFF ANNOUNCED.Byline: Sherri Chunn Associated Press Associated Press: see news agency. Associated Press (AP) Cooperative news agency, the oldest and largest in the U.S. and long the largest in the world. AMR (1) (Adaptive Multi-Rate) A variable rate speech codec selected by the 3GPP for the 3G evolution of the GSM cellphone system (WCDMA). Using the Algebraic CELP (ACELP) compression technology, AMR provides toll quality sound at transmission rates from 4.75 to 12. Corp., the parent company of American Airlines, plans to spin off its majority interest in Sabre Inc. next year in an attempt to attract more business for the computer reservation company and enhance both companies' values. The spinoff will make it easier for Sabre - which also owns one of the nation's leading online travel services in Travelocity - to pursue contracts with other carriers who were reluctant to use Sabre because of its ties to AMR. Ray Neidl, an analyst who follows the airline industry for ING Barings in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , said the spinoff will also enable both stocks, particularly AMR's, to reach their potential. ``American has been undervalued Undervalued A stock or other security that is trading below its true value. Notes: The difficulty is knowing what the "true" value actually is. Analysts will usually recommend an undervalued stock with a strong buy rating. . But you may see that change once the Sabre spinoff is complete,'' he said. Investors liked the strategy, announced Tuesday. Shares of Sabre rose $2.875 to $54.75 in trading at 5:15 p.m. Tuesday on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. . Shares of AMR rose $4.84375 to $68.50. Sabre, the nation's largest computer reservation system for travel agents, also named William J. Hannigan, 40, its new president and chief executive officer, effective immediately. Hannigan joins Sabre from Southwestern Bell, where he served as president of SBC (1) (SBC Communications Inc., San Antonio, TX, www.sbc.com) A large, national telecommunications company that grew from a multitude of local and regional companies, including Southwestern Bell, Pacific Bell and Nevada Bell, into a single, unified brand by 2002. Global Markets. AMR, which owns 83 percent of Sabre, will distribute its 107 million shares of Sabre stock to AMR shareholders next March in a deal valued around $6.2 billion. Sabre officials are hoping the move will increase the company's business. Twice this year, American Airlines rivals broke off talks that were leading toward letting Sabre handle their reservations, ticket sales and information technology. ``Certainly with our independence, it's more clear (to major carriers) that success for Sabre won't mean enrichment for American,'' said Hannigan. |
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