United Shares Plummet on Six-Year Old Story

Yesterday, a financial newsletter circulated a story that United Airlines was seeking bankruptcy protection, which lead to a sell-off in its shares. The story was correct but there was one important detail — it was from 2002.

Investors clearly took the article as news that the Chicago-based airline had once again sought protection from creditors, a scenario that had grown less remote in the past year as jet fuel prices skyrocketed.
United had refuted a report by late morning in New York, but not before the stock lost more than 75 per cent of its value. The shares appeared to trade at 1 cent, the default price assigned following its halt.

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Posted by on September 9th, 2008 at 10:55 am


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