UAL, Continental to Form Largest Airline
UAL Corp (UAUA.O), parent of United Airlines, said it will buy Continental Airlines Inc (CAL.N) for about $3.17 billion in stock, forming the world's largest carrier and further shrinking the U.S. airline industry.
Continental shareholders will receive 1.05 shares of United common stock for each Continental common share they own. Based on United's stock price of $21.60 on Friday afternoon, and Continental's 139.6 million outstanding shares as of April 21, United would pay $3.17 billion for Continental, or $22.68 a share.
That represents a 1.5 percent premium over Friday's closing price.
The name of the combined airline will be United Airlines. The name of the holding company will be United Continental Holdings Inc.
Continental Chief Executive Jeff Smisek will run the Chicago-based combined airline with over $29 billion in annual revenue, while UAL CEO Glenn Tilton will be non-executive chairman. Smisek, 55, will become executive chairman when Tilton steps aside, expected two years after the merger closes.
External Source - For the complete article click here.
Source - Reuters
