Which 1989 crash began with the collapse of a leveraged takeover of United Airlines?

The Friday the 13th mini-crash began on October 13, 1989, after the collapse of a leveraged takeover of United Airlines.

The proposed $6.75 billion buyout was led by Shearson Lehman Hutton and financed largely with debt. When doubts emerged about the financing, the deal failed. The news contributed to a sharp sell-off, particularly in takeover-related stocks and the broader U.S. market.

The Dow Jones Industrial Average fell 190.58 points, or 6.91%, on October 13. The decline came two years after Black Monday, but it was much smaller and had a different immediate trigger. It also occurred during a period when investors were increasingly concerned about leveraged acquisitions and the savings-and-loan crisis.

The episode is called a “mini-crash” because the market recovered from the disruption relatively quickly. Its date-based nickname is sometimes confused with Black Friday, which refers to unrelated market or retail events.