Originally Posted by
SpecialTracking
Merger of Equals is a touchy feely term like, well, shared sacrifice, but means nothing. United had to issue shares of stock in an all stock deal to aquire CAL.
Not true.
What Does Merger Of Equals Mean?
The combination of two firms of about the same size to form a single company. In a merger of equals, shareholders from both firms surrender their shares and receive securities issued by the new company.
This was the case in the Merger of Equals between United and Continental. Both UAUA and CAL shareholders surrendered their stock and received shares of UAL (United-Continetal Holdings) in return.