Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SATURDAY, March 26, 1994 TAG: 9403280158
SECTION: BUSINESS PAGE: A-6 EDITION: METRO
SOURCE: Associated Press
DATELINE: CHICAGO LENGTH: Medium
The $4.5 billion deal, if approved by UAL shareholders, would end a nearly seven-year employee effort to buy UAL Corp., which would become the nation's largest employee-owned company, with a payroll of about 78,500.
UAL, the Air Line Pilots Association and the International Association of Machinists had agreed in principle on a buyout in December. The airline said it would release details of the pact after it is signed.
In a brief statement, UAL Chairman and Chief Executive Stephen M. Wolf said, ``This transaction represents the best path to a competitive and successful future for United Airlines. I congratulate our employees on this important step that will enable United to reduce its costs and, thus, compete more effectively in the aviation marketplace worldwide.''
United has no employees in Roanoke. United Express service at Roanoke Regional Airport is operated by Atlantic Coast Airlines Inc.
UAL stock surged $7.75 to $131.50 a share on the New York Stock Exchange on Friday, with 447,700 shares traded.
The deal appeared to be in jeopardy last week, when a deadline for signing a definitive agreement passed. The Machinists had balked at several issues, including contract terms for Wolf's successor.
United hopes to use the concessions to lower its labor costs and build a separate, short-flight airline.
The company had put pressure on the Machinists to close the deal by threatening to lay off ramp workers, to rescind severance pay to about 5,000 Machinists who lost their jobs when the airline sold its flight kitchens to Dobbs International Services, and to sell its airplane maintenance operations in San Francisco.
by CNB