United and Continental Airlines were to announce a three-billion-dollar merger that would create the world's biggest airline, in an all-stock transaction approved by the boards of both companies, US news reports said Sunday.
The tie-up was to be formally announced on Monday.
The Wall Street Journal said United's board met Friday to vote on the deal, while Continental's board voted Sunday to approve it.
The new company would retain the United name and keep the corporate headquarters of the Chicago-based airline, said The New York Times, which also said -- citing sources close to the deal -- that the transaction is expected to close in the fourth quarter.
United's current CEO, Glenn Tilton, is to become non-executive chairman of the board of the new company for a two-year term. Meanwhile Jeff Smisek, CEO of the Houston, Texas-based Continental, is to be the chairman of the new carrier.
The Times said the combination of the two firms would have a 21 percent of the domestic air industry market share, and seven percent of global capacity -- ahead of US airline Delta that currently leads with six percent.
Source : AFP (Agence France-Press), 02.05.10.
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