Reply #3: Boards OK Continental-United merger

[liberal N proud]

Source: Associated Press

United Airlines and Continental Airlines agreed to combine in a $3 billion stock swap to create the world's biggest airline, people with knowledge of the deal said Sunday.

The transaction will test the notion that the money-losing airline business can work better on a large scale. Corporate travelers love a wide choice of departure times and a worldwide network, and the combined United and Continental will have flights reaching from Shanghai to South America.

The transaction is to be announced Monday morning after it gained approval from both airlines' boards Sunday, the people said. They declined to be identified because the transaction hasn't been announced.

The companies are expected to describe it as a merger of equals. But travelers will see more of United once the deal closes. The United name will live on and the headquarters will be in Chicago, United's hometown. United shareholders will own about 55 percent of the combined company, the people said.



Read more: http://www.msnbc.msn.com/id/36904325/ns/business-us_business/