UAL Stalls Decision on Davis Takeover Bid
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UAL Corp. on Thursday stalled a decision on Los Angeles billionaire Marvin Davis’ $6.2-billion takeover offer, saying it was “still premature” to decide whether selling itself was appropriate and that it would continue to study other alternatives.
The company, parent of United Airlines, also confirmed that it has been contacted by various third parties regarding possible bids. In addition, it said its advisers met with representatives of an employee group. That group is known to be the airline’s pilots.
UAL’s announcement, which came following a nearly all-day board meeting, fueled speculation that UAL will seek to pursue a management buyout or recapitalization to block Davis’ sweetened $275-per-share offer made Wednesday.
But UAL’s announcement came as pressures mounted on the carrier to put itself up for auction. UAL stock has risen about $100 per share since Davis made his initial $240-per-share offer on Aug. 7, making defensive moves more expensive.
In a statement released after the UAL announcement, Davis continued to hold out hope that a friendly transaction could be pursued.
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