UAL's New Shares Fall on First Trading Day MOVERS MARKETPLACE By Bloomberg
Posted on: Friday, 3 February 2006, 12:00 CST
The new shares of United Airlines' parent, UAL fell, as much as 11 percent on their first day of trading, Thursday, as the company emerged from more than three years of bankruptcy protection. The shares, trading under the symbol UAUA, fell $4.11 to close at $35.89 in New York, after dropping as low as $35.50. They have been as high as $43.75 in trading since last Friday on a "when-issued" basis. At the closing price Wednesday of $40, the company's market value was $5 billion
United, the world's second-largest airline, after American, had forecast in its plan to exit bankruptcy protection that the new stock would trade at $15 a share. The company is issuing 125 million shares, mainly to creditors and to United employees who provided more than $4 billion in pay and benefit concessions to help reduce UAL's costs and stem losses. UAL canceled its previous stock as part of the bankruptcy reorganization, with shareholders receiving nothing.
Source: International Herald Tribune
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