-- After the Bell-UAL shares rise, Micron falls on wider loss --
(Updates with Micron Technology slips in paragraph 3.)
NEW YORK, Dec 17 (Reuters) - Shares of UAL Corp. <UAL.N>,
the bankrupt parent of United Airlines, rose in extended
trading on Tuesday after a U.S. bankruptcy judge said a
trustee's efforts to sell stock from an employee ownership plan
will be reconsidered on Dec. 30.
Shares of UAL rose after hours to $1.34 on Instinet from a
close of $1.27 on the New York Stock Exchange. About 62,000
shares were traded after the bell.
Among other stocks that were active in after-hours trade,
Micron Technology Inc. <MU.N> fell to $12.09 after the No. 2
maker of computer memory chips reporter a wider quarterly net
loss, saying the average selling price for its products fell 12
percent. Micron had closed down 21 cents to $13.28.
Shares of video game company Electronic Arts Inc.<ERTS.O>,
the industry leader, fell to $57.20 from a close at $59.68 on
Nasdaq after its chief rival Activision <ATVI.O> reported
weaker-than-expected holiday sales. Activision fell to $13,
from a close of &15.73.
Shares of home decor retailer Kirkland Inc. <KIRK.O> fell
to $12 from a close of $13.289, after it reported
fourth-quarter sales have fallen short of estimates due to
price cutting. Quarterly earnings may miss forecasts, it said.
Darden Restaurants Inc. <DRI.N>, the parent of Olive Garden
and Red Lobster restaurant chains, rose to $20 from a close of
$19.61, after it said quarterly earnings rose 6.8 percent.
Technology shares fell after hours following an initial
slight rise. The Nasdaq 100 after-hours indicator, which
measures trading in a basket of the Nasdaq composite's largest
100 non-financial stocks, rose 5.28 points, or 0.51 percent.
Stocks slid on Tuesday after a warning from McDonald's
Corp. <MCD.N> that it would post its first loss ever and dour
outlooks by retailers about the pivotal holiday shopping season
dampened investor enthusiasm.
The Dow Jones industrial average <.DJI> closed down 92.01
points, or 1.07 percent, at 8,535.39. The broader Standard &
Poor's 500 Index <.SPX> fell 7.41 points, or 0.81 percent, to
902.99. The technology-laced Nasdaq Composite Index <.IXIC>
declined 8.28 points, or 0.59 percent, to 1,392.05, according
to the latest market figures available.
UAL BANKRUPTCY JUDGE
A U.S. bankruptcy judge ruled the trustee for United
Airlines' employee stock ownership plan cannot sell more shares
for the moment, as the court needs more time to consider the
impact the sales would have on the No. 2 U.S. airline.
The trustee, State Street Bank and Trust Co., had fought
for the right to keep selling the plan's stock -- currently
valued at as much as $39 million -- since common and preferred
shares typically are rendered worthless by bankruptcy.
UAL, which filed the largest bankruptcy in aviation history
last week, sought to prevent a potential share sale that could
spark an ownership shift. This might, in turn, affect its tax
liability.
The judge said he would reconsider the issue at a
previously scheduled Dec. 30 hearing for the restructuring.
((Reporting by Herbert Lash, editing by Jan Paschal;
herb.lash@reuters.com; Reuters Messaging:
herb.lash.reuters.com@reuters.net; 646-223-6019))
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nN17236146
XHR/US
Symbols:
US;UAL US;MU US;ERTS US;ATVI US;DRI US;MCD US;SPX US;MUZ US;COMP US;SPL US&DJI
17-Dec-2002 23:22:42 GMT
Source RTRS - Reuters News |
