Government Owns Twenty Percent of United

UAL, the parent company of United Airlines, has emerged from bankruptcy after three years of reorganization with an unusual largest shareholder, the United States government. News The government, through the Pension Benefit Guarantee Corportion, is UAL's largest shareholder, holding a whopping twenty percent of the stock of the publicly traded company.  The Pension Benefit Board took over United's underfunded pension plan ($10billion) and became an unsecured creditor.  The unsecured creditor took stock in exchange for their debt in the reorganization.  The government as the largest shareholder, could vote on the new directors and, with a 20% stake, effectively control the company.  This will not happen.  The government will sell its stake as quickly as possible and will not play a role in company management.  Apparently if company affairs require  a shareholder vote before the government has dumped all its shares, the government will abstain.  The development does stimulate the imagination, however, and give rise to some speculation on scenarios when the government would have an obligation to exercise its vote.