United Airlines and Continental Airlines are continuing their talk on merging. Disagreements over which share price to use for the stock-swap deal has developed. People have been saying that if they figure the price for the stock-swap deal, the two airlines will merge. If they cannot figure it out, the talk will dissolve as they did two years ago.
Continental thinks the fairer deal is to use the 30-day share price prior to April 7. United wants to use the price the day before the deal is signed.
Great post dave. I think this is an interesting topic as these are two of the largest airline busineses. If this deal does get done I wonder what impacts this will have from a consumer standpoint?
ReplyDeleteThank you Nathan for your comment. It will be interesting to see how it turns out.
ReplyDeleteWell they are perhaps two of the largest airline businesses in the UNITED STATES. However, these two airlines are already engaged in a strategic alliance with a group of airline companies from around the world known as Star Alliance. US Airways is another partner that both Continental and United have.
ReplyDeleteI read the article and it seems that there has already been agreement on the upper management (Chairman and CEO), which would mean that their corporate cultures aren't that far apart and there is mutual agreement somewhat. So since that has been agreed, I don't see why this deal wouldn't occur. It potentially can achieve economies of scale