United Airlines and Continental Airlines moving closer to merger value: reports
United Airlines and Continental Airlines have reportedly moved closer to solving differences in valuing their potential merger, enabling an agreement as soon as next week (Bloomberg/SmartTrend/Associated Press/CNBC/Chicago Tribune, 28-Apr-2010). Continental's Board reportedly met on 28-Apr-2010 to discuss the potential tie-up, with United Airlines directors to meet on 30-Apr-2010. The carriers have reportedly agreed to an all-stock merger with no premium, although the companies have disagreed over the time period for the ratio of a stock swap. United and Continental are the third and fourth largest US carriers by traffic and combined they would become the world’s largest carrier, surpassing Delta Airlines/Northwest Airlines. The proposed merger terms also include appointing Continental CEO, Jeff Smisek, as CEO of the combined carrier, and United’s Glenn Tilton as Chairman.