New UAL stock, who's buyin'

[BigMotorToter]

UAL will issue new stock on Feb. 1st. Does anyone know if it will be issued at around the same price the current stuff is? Is it an IPO kind of thing? I know it's an airline stock but does anyone think getting in in the beggining may pay off, at least in the short term? What do you all think?



AP
United Airlines' Stock to Trade on Nasdaq
Tuesday January 24, 10:31 am ET

United Airlines' Stock to Trade on Nasdaq When Company Comes Out of Bankruptcy Next Week

ELK GROVE VILLAGE, Ill. (AP) -- UAL Corp., United Airlines' holding company, said Tuesday its stock will trade on the Nasdaq Stock Market when the company comes out of bankruptcy next week.
The ticker symbol will be UAUA.
UAL has said since entering Chapter 11 bankruptcy in December 2002 that its current shares would lose almost all their value under its reorganization plan, which was given final approval by a federal bankruptcy court last Friday. Those shares fell 4 cents to 23 cents in over-the-counter trading Tuesday.
Under the reorganization plan, UAL will begin issuing as many as 125 million shares of its new common stock as soon as Feb. 1. Most shares will go to the company's former unsecured creditors, with 8 percent going to 400 managers of the nation's No. 2 airline.
Separately, the company said its exit plan has received an extremely positive reception in the capital markets. It said it has received offers of subscription for more than twice the capital necessary to support its $3 billion in exit financing, which consists of a $2.8 billion loan and a $200 million revolving credit line.
"United has made fundamental and sustainable improvements in our operations, cost structure and revenue strategy," said Glenn Tilton, chairman, president and chief executive.

 

[D-Bo]

It is like an IPO and the price won't be anywhere near the price of the bk UA stock. I'd guess that it will open at at least $15 per share. Maybe in the $20's. That is a guess though.

 

[G4G5]

I know 400 executives (or 8%) that will be selling it.

 

[D-Bo]

I know 400 executives (or 8%) that will be selling it.

Maybe in the future but they can't sell right away.

 

[G4G5]

I have not seen it written any where. Are you sure they can't sell right away?

Do you have an idea how long they need to hold onto their options? Of better still can you provide me with a link to where you got you info?

 

[D-Bo]

I have not seen it written any where. Are you sure they can't sell right away?

Do you have an idea how long they need to hold onto their options? Of better still can you provide me with a link to where you got you info?

They vest over 4 years. 20% after 6 months. 20% after 1 year. And 20% each additional year. I can't link you to the UA ALPA site.

 

[Saabslime]

I may actually end up putting some money on the table here. I'm kicking myself for not doing it after the merger with AWA and AAA. That stock opened at somewhere around $19 and went all the way up to $40. Investors seem to love these big company's coming out of bankruptcy so it may be a good opportunity.

 

[32LT10]

I have not seen it written any where. Are you sure they can't sell right away?

Do you have an idea how long they need to hold onto their options? Of better still can you provide me with a link to where you got you info?

Dork. It was written in just about every article. Get a grip.

 

[IB6 UB9]

Dork. It was written in just about every article. Get a grip.

Now your sour disposition is polluting this thread too. How do you keep a medical?

 

[crazee8]

Dork. It was written in just about every article. Get a grip.

AHHHHHH! Words from the "professional." I would love to listen to his "professional" radio transmissions as well.



Back on topic. As as long-term investment - I think not - being as it is an airline stock. But, I wouldn't be surprised if it has a bit of a run-up initially being as the BK exit has been so highly anticipated for so long. I'm thinking about some very short term investing myself. (With a small amount of $$...)