P.M. BRIEFING : UAL Unions Seek Investment Aid
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NEW YORK — UAL Corp.’s three unions are seeking to hire investment bank Goldman, Sachs & Co. to assist them in financing their $4.4-billion bid for the airline company, a spokesman for the unions said today.
The move apparently is an admission that the unions, United Airline’s machinists, pilots and flight attendants, are having difficulty lining up bank financing with their existing advisers, Salomon Brothers Inc. and Keilin and Bloom.
Financing for the deal is being watched closely because a $6.8-billion bid by UAL’s management and pilots collapsed last October when the group could not persuade banks to lend for that deal, prompting a 190-point plunge in the stock market.
The latest bid, which was approved by UAL’s board in early April, offers a combination of cash and securities with a total face value of $201 a share for the parent of United Airlines, the second-largest U.S. carrier.
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