U A L CORP (UALAQ) (1.33  +0.08)

United Airlines' parent plans to reduce its request for federal aid and seek some $500 million in new equity to try to reverse a government denial of a $1.6 billion loan guarantee, The Wall Street Journal reported. Some of the inducements United, a unit of UAL CORP., discussed with federal officials last week are expected to be formally proposed, the newspaper said, citing unspecified people familiar with the matter. The new proposal, which could be made later on Monday, includes an effort to find about $500 million in new equity, thereby reducing the size of the federal guarantee, the newspaper said. United would seek funds from private equity investors, possibly augmented by the issuance of UAL subordinated debt, the newspaper said. (Reuters 02:10 AM ET 06/21/2004 More...)