UAL Stock Rises on Talk of More Suitors

UAL Corp. stock climbed further Friday amid reports that the airline company has lured at least two other potential bidders besides Los Angeles investor Marvin Davis.

Shares in UAL, parent of United Airlines, rose $4.625 to $271 in active New York Stock Exchange trading, adding to the pressure on the board to put the company up for sale.

The Chicago-based company would not comment on reports that investor Robert M. Bass of Texas and another group including the Morgan Stanley investment bank and British Airways were interested in the firm.

Marketing Agreement

British Airways also declined to comment, and Bass could not be reached.

The wealthy Bass is believed to own some UAL stock, and British Airways is already involved with United through a 1988 marketing agreement between the two companies. BA also is half-owner of UAL’s Covia computer reservations system.

Analysts speculated that BA’s involvement with Morgan Stanley is aimed at getting around a rule prohibiting foreigners from owning more than 25% of a U.S. airline.

Analyst Andrew Geller at Provident National Bank said he “sees the potential for a bidding frenzy” for UAL in the making. The board met Thursday to review Davis’ sweetened bid of $275-a-share, or $6.2 billion, but announced no decision.