Tribune staff report | Fast-moving merger talks between United and Continental Airlines hit a snag over the weekend as the two companies disagreed how to value the deal, according to a report in the New York Times.
Talks hit an impasse over the stock price used to compute the
exchange ratio for the all-stock transaction, the New York Times
reported. Continental wants United shares to be valued prior to April
7, when United’s stock soared 18 percent on reports that it was in
talks with US Airways.
As first reported by the Tribune, the two carriers have largely
resolved the social issues that pose the greatest hazards to mergers
and were on track to wrap up a deal over the next week.
The new airline would be headquartered in Chicago and headed by
Continental CEO Jeff Smisek. United Airlines CEO Glenn Tilton would
move to its board.
US Airways announced Thursday that it had ended talks with United,
although analysts expect those negotiations to resume should the
United-Continental discussions falter.
Click here for the New York Times report.
This is the second suitor that has rebuffed United. Makes me wonder what going on at UAL!
Oh too bad. They’ll work it out, then..
This will become an airline too big to fail, but not to big to flounder and stink. This will begin the next round of fed bailouts if Dems stay in control.
Continental still has decent service and could make it alone. UA sucks, and can’t. Enter the bankers and lawyers.
Airlines service? Just think Amtrak.
They hit a snag have to go back to the drawing table the merget will go forward. Wait and see.
roundlaketom | April 26, 2010 9:27 AM | Reply
This is the second suitor that has rebuffed United. Makes me wonder what going on at UAL!
What is going on at UAL? That’s easy!
Glen Tilton is what is going on at UAL!
That and good old fashioned greed!
wunderbra wrote:”This will begin the next round of fed bailouts if Dems stay in control.”
LOL! The GOP fully supported the first round of bailouts…never forget who the President was at the time. Also, if the GOP is against bailouts, why are they trying to block Democratic bank reform legislation designed to prevent more bailouts? Oh, that’s right, because it’s easier for the GOP to flat out lie and tell their constituents that it is a pro-bank bailout plan, and keep collecting checks from the bank lobby in return for the favor.
The Dems are the ONLY ones working to block more bailouts. The GOP wants more of the same deregulation that LED to the bailouts.