Davis Sees No New Bid for UAL : Airlines: One source contends that the company’s unions are unlikely to be able to arrange financing for their takeover attempt.

Los Angeles financier Marvin Davis does not intend to renew his takeover bid for UAL Corp., the parent of United Airlines, The Times learned Tuesday.

Davis had been reported over the weekend to have made a new proposal for the company. Despite such reports, he was said Tuesday to have decided against a pursuit of the Chicago-based airline company.

Last August, Davis offered $275 a share--about $6.2 billion--for UAL. That preceded a $300-a-share bid--worth $6.79 billion--by a combination of UAL labor and management and British Airways, which fell through because adequate financing could not be arranged.

UAL stock, which had closed above $290 in September, plummeted to the low-$120s in January and February. Tuesday, it closed at $164.75, up $3.625 on the New York Stock Exchange.

Two weeks ago, the airline’s unions--the pilots, machinists and flight attendants--made a new bid, offering a package of cash, debt and stock estimated to be worth about $185 a share. Under the proposal, the labor consortium would get a 75% stake in UAL, and the remaining 25% would stay in the hands of present shareholders. The proposed deal was valued at about $4 billion.

The unions were joined in their offer by a New York investment group, Coniston Partners, which is UAL’s biggest shareholder, with 11.8% of the stock. Coniston said it intended to wage a proxy fight to take over the UAL board if the bid was not accepted on friendly terms.

Late last month, in an apparent attempt to ward off the proxy fight, UAL invited Davis to return to the bidding for the company.

And when a Chicago business publication reported this week that Davis had suggested a “concept” for a bid higher than $220 a share, it appeared that the Los Angeles man was back in the running. The information obtained by The Times on Tuesday now seems to have quashed that report.

The unions do not want to boost their offer, it has been reported, unless they receive assurances that the higher bid would be accepted. The board reportedly wants to get $220 a share for the company but is said to have let it be known informally that $200 might be enough.

However, one source said Tuesday that the unions are not likely to be able to come up with the financing for the takeover package.

“The banks feel that without a business person who shares in the risk--a business person who has equity in the company, it is a scary situation,” the source said. “The unions will not be able to finance the deal.”

The source said Stephen M. Wolf, chairman and president of UAL, will be ousted if the unions take over or if there is a successful proxy fight. “The only way he can stay is if nothing happens,” the source said.