Tags: US | Airline | Talks

Talks Deepen Between United and Continental

Tuesday, 20 Apr 2010 06:35 PM

 

  Comment  |
   Contact  |
  Print   |
    A   A  
  Copy Shortlink

United Airlines and Continental Airlines are in the early stages of exchanging financial information that could lead to a deal to combine and create the world's biggest airline, people briefed on the talks said Tuesday.

United had been talking with US Airways about a combination, but speculation has increased that United is more interested in the larger Continental.

The exchange of information between United and Continental was confirmed Tuesday by two people who were briefed on the talks. They spoke on condition of anonymity because they were not authorized to publicly discuss the negotiations.

One person said bankers for United and Continental are discussing how to value the companies in a stock-for-stock swap.

That person said talks between United and US Airways have stopped for now with no firm date for starting again. However, the person stressed that United hasn't ruled out a combination with US Airways.

UAL Corp.'s United, Continental Airlines Inc. and US Airways declined to comment.

Another person briefed on the United-Continental talks said the two began exchanging information over the weekend. That job might be easier because the airlines considered combining in 2008, until Continental broke off talks.

A merger then was seen as risky because of soaring prices for jet fuel and weak balance sheets in the airline industry. Oil prices are lower today, U.S. airlines have built up cash reserves, and airlines have cut capacity, which should give them more power to raise fares this summer.

© Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

  Comment  |
   Contact  |
  Print   |
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Coburn Tells '60 Minutes': I'm Glad We Elected Obama

Thursday, 18 Dec 2014 18:04 PM

Retiring Sen. Tom Coburn, an Oklahoma Republican, said he is glad Barack Obama was elected president during an interview . . .

White House Slams Rubio Over His Attacks on Cuba Deal

Thursday, 18 Dec 2014 17:41 PM

The White House on Thursday hit back against Florida Sen. Marco Rubio's harsh attacks on President Barack Obama's plans  . . .

Alan Dershowitz: Anti-Semitism Rising in the West

Thursday, 18 Dec 2014 16:03 PM

Legal scholar and author Alan Dershowitz, appearing on Newsmax TV Thursday, discussed a European Union court ruling in f . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved