UAL/Continental
On May 3, 2010 UAL Corp. (NASDAQ: UAUA), parent company of United Airlines, and Continental Airlines Inc. (NYSE: CAL) announced plans to merge.
The combined company will surpass the size of Delta Air Lines Inc. (NYSE: DAL), while the United name will remain with planes that include Continental colors and symbols.
Under the terms of the deal, shareholders of Continental will receive 1.05 shares of United common stock for each common share of Continental they own. United shareholders would own 55 percent of the equity of the combined company, Continental 45 percent.
The airline with be headed by current Continental CEO Jeffery Smisek, while United CEO Glenn Tilton will serve as company chairman for at least two years. Smisek will take over chairman duties after Tilton steps down.
