Airline’s Parent Softens Stance : Allegis Sets Preconditions for Sale of United
NEW YORK — Allegis Corp., which had insisted earlier that its United Airlines subsidiary was not for sale, indicated Friday that it would consider any offer that, among other conditions, “was for all cash and left the company adequately financed.”
The corporation made its statement in response to heightened efforts by United’s pilots union to buy the airline.
On Thursday, the pilots said they had secured adequate financing through Chemical Bank of New York to take control of the carrier and that they had lured William R. Howard away from his job as chairman of Piedmont Airlines to direct their acquisition efforts and to head United if they are successful.
Tells of Concerns
Allegis said it is concerned that the pilots’ “initiative would lead to a very heavily indebted, financially weak airline with severely limited growth potential.”
However, it added that it would “feel obligated to consider any proposal that was for all cash and left the company adequately financed, that was agreed to by all unions representing United employees, that provided for fair participation by non-represented employees and that contained a satisfactory plan for the management of the company after the change in ownership.”
Allegis said the pilots’ current proposal “did not satisfy these objectives.” The pilots announced their $4.5-billion offer in April.
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