There are now reports that the boards of both United Airlines and Continental Airlines have approved an agreement that sees UAL buying CAL for approximately its current market price of $3.2 billion.   It is an all stock deal where Continental shareholders will receive 1.05 shares of United for their Continental stock.

The Washington Post reports that the new company will have a 16 member board with 2 seats reserved for labor unions.   The combined companies will have employees number over 90,000 and a combined fleet of more than 690 aircraft.

Official announcement of the deal is said to come on Monday morning.

It’s basically the deal we’ve all been hearing about for 2 weeks now.  UAL buys CAL, the company uses the United name and the Continental executive team runs most of the show.  Read the CNN/Money Magazine article HERE.

Filed under: Airline News by ajax