CHICAGO — Shares of United Airlines parent UAL Corp. (UAUA) resumed trading Monday afternoon, regaining most of the ground they lost after a newspaper report, apparently published in error, claimed UAL had gone into bankruptcy.
A nearly 6-year-old news story on the 2002 bankruptcy filing of UAL Corp resurfaced on the Internet Monday, clobbering the airline's shares briefly as some traders mistook the report as current and plausible news.
UAL and several news organizations involved were blindsided by the resurrection of the Chicago Tribune article. UAL, which exited bankruptcy more than two years ago, demanded a retraction by the Florida Sun-Sentinel, where the out-of-date report first appeared.
UAL shares fell 76% to $3 after the article was posted on the Bloomberg financial news service. The magnitude of the decline may underscore the lack of confidence investors have in UAL and the troubled airline industry in general.
By Kyle Peterson, reuters
http://www.usatoday.com/money/industries/travel/2008-09-08-rumor-united_N.htm
My Response: The stock should not have falling so deep for UAL. Many people investing and buying shares for UAL must not have faith that they will stay afloat. But it is said that because the airline stocks are so shaky, many of their shareholders are very precaution.
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