United unveils rights issue plan to protect tax assets

United said Friday it was seeking shareholder approval for a rights offering as part of a plan to thwart any hostile takeover moves and preserve a $8.2b tax benefit. United said it had net federal operating loss carryforwards of about $8.2b as of the Sept. 30 that would be at risk if the company changed ownership. Shares in United have declined due to the sharp drop for air travel caused by the COVID-19 pandemic, making it vulnerable to takeovers. Under the plan, United will issue one preferred share purchase right in the form of a dividend for each outstanding share of common stock to certain shareholders.<br/>