United’s Board Approves Merger W/ Continental
 

United’s Board Approves Merger With Continental

By MICHAEL J. de la MERCED and JAD MOUAWAD

The parent company of United Airlines, and Continental Airlines are expected to announce on Monday that they agreed to merge in a deal valued at more than $3 billion, people familiar with the discussions said.
The transaction would create the world’s biggest airline. The board of the UAL Corporation, United’s parent, approved the all-stock transaction to buy Continental on Sunday, these people said.

Continental’s board is also scheduled to meet later on Sunday to approve the deal, according to the people familiar with the talks, who still cautioned that things could still fall through in the final minutes. It is expected to close in the fourth quarter.

The carriers would have a leading presence in the top domestic markets, including New York, Chicago, and Los Angeles, along with an extended network to Asia, Latin America and Europe.

The combination would jump ahead of Delta Air Lines, which became the top airline after its purchase of Northwest Airlines two years ago.
The combined company will keep the United name and will be based in Chicago.

Continental’s top executive, Jeffery A. Smisek, would run the new company. United’s chairman, Glenn F. Tilton, would be nonexecutive chairman for two years. After that, Mr. Smisek will become the executive chairman.

United?s Board Approves Merger With Continental - NYTimes.com

I thought it was a merger.

Congratulations guys. Everything is looking good so far.

It is. It's not a hostile take over. It's just a merger agreement.

What's looking good? It is no surprise that UAL approves the deal. Nothing has happend yet.

"The board of directors at both airlines approved the deal Sunday, the Journal reported. The deal is expected to be a merger of equals, valuing Continental at around its current market capitalization of $3.1 billion, the report indicated."

United and Continental near merger deal - May. 2, 2010

Most articles are saying that United is buying CAL but it is a stock swap....who cares but Monday is the start of a new day.

United Airlines, Continental to Announce Merger - WSJ.com

Here is an article from the future (note the time):

Continental, United Airlines Approve Deal to Combine Into World's Largest Airline
May 02, 2010 7:25 PM EDT
MINNEAPOLIS (AP) -- Directors at Continental and United airlines have approved a stock-swap deal that would combine them into the world's largest airline, a source with knowledge of the situation said on Sunday.

The deal values Continental at some $3.2 billion.

The Sunday board actions were described by a person with knowledge of the votes, who declined to be identified because the companies plan an announcement on Monday.

The combined airline will be called United, based in United's hometown of Chicago, and run by Continental CEO Jeffery Smisek. United CEO Glenn Tilton will be chairman.

United, a unit of UAL Corp., is the nation's third-largest carrier by traffic. Continental Airlines Inc., in Houston, is the country's fourth biggest.

Any deal would need the approval of antitrust regulators. The Justice Department approved Delta Air Lines Inc.'s purchase of Northwest in 2008, which turned Delta into the world's biggest carrier.

Combining Continental and United would leave the U.S. with three big international airlines -- the new United, Delta, and American. US Airways Group Inc. also flies internationally, but its 2009 international traffic was less than one-third the size of American's.

One key issue in putting the two airlines together will be integrating the pilot workforce.
A union hot line message to United pilots on Sunday said the "union remains engaged in this issue, and if a merger is announced by United and Continental," union officials "are fully prepared to protect and defend the interests of all United pilots."

It sounds like they're going to merge the same way as DAL/NWA.

Yep, no added debt and just a ratio of one stock to another.

Saves the bottom line. Cashless transaction. :D