
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: TUESDAY, July 10, 1990                   TAG: 9007100165
SECTION: BUSINESS                    PAGE: A3   EDITION: STATE 
SOURCE: Los Angeles Times
DATELINE: NEW YORK                                LENGTH: Short

BANKS CONSIDER UAL BUYOUT

In an important but not conclusive development in the effort by UAL Corp.'s unions to buy the airline company, five big American banks were reported Monday to be interested in providing $500 million each in financing for the proposed $4.4 billion buyout.

If the deal goes through, it would make UAL, the parent company of United Airlines, the largest employee-owned company in the nation. UAL's present shareholders would receive $201 per common share, according to the terms announced April 6.

The unions have agreed with the company's directors to come up with "commitments" or "reasonable assurances" of the financing by Aug. 9. If they are successful, the buyout group, called the United Employee Acquisition Group, will have another four months to close the deal.

The banks that have expressed interest are Citicorp, Chase Manhattan Corp., Bankers Trust Co., Manufacturers Hanover Corp. and Chemical Bank Corp., all headquartered in New York.

by CNB