|
|
Article: The balloon bursts for Wall Street arbs: UAL and junk-bond jitters spell leaner times for the midwives of leverage. (stock arbitrageurs; UAL Corp.)
- Article from:
- U.S. News & World Report
- Article date:
- November 6, 1989
- Author:
CopyrightCOPYRIGHT 1989 All rights reserved. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
|
The balloon bursts for Wall Street arbs
For arbitrageurs, those Wall Street midwives of takeovers and buyouts, hope springs eternal. Facing $1 billion in losses following the recent collapse of a management-led bid for UAL Corporation, the arbs continue to believe that somehow the deal will be resurrected, bailing them out. That is why most are doggedly sticking with the stock of United Airlines' parent company.
UAL has provided arbs with perhaps their most turbulent ride ever. The stock galloped from $145 in early July to over $290 three months later, then started a dizzying tailspin on October 13, when UAL's management and pilots announced they could ...