Takeover Speculation Boosts UAL, Other Airline Stocks
NEW YORK — A new bout of takeover speculation Monday lifted shares of UAL Corp., the parent of United Airlines, to their highest level in more than a year and swept other airline issues higher.
Shares of UAL jumped $8 to $174.75, a new 52-week high, in brisk trading. A spokesman for the Chicago-based airline company declined comment.
One trader said UAL stock was driven by speculation that if any party has recently accumulated 5% of the company, it will soon disclose this to the Securities and Exchange Commission.
An agreement last month by NWA Inc., the parent of Northwest Airlines, to be bought by a group of investors ignited a flurry of activity in UAL, whose shares have since risen 43%.
Speculators are betting that UAL is the next likely airline takeover target and could become prey to a raider such as Texas financier Robert M. Bass or Los Angeles investor Marvin Davis.
Davis was spurned in the bidding for NWA. Last month, USA Today said Bass had bought a small block of UAL stock. Both investors have declined comment on potential interest in UAL.
Other airlines continued to benefit from the buyout fever surrounding UAL. Shares of AMR Corp., parent of American Airlines, gained $1.75 to $65.75 and Delta Air Lines Inc. rose $1 to $70.375.
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