UAL Corp, primogenitor of United Airlines, will buy Continental Airlines Inc for $3.2 billion (�2.01 billion), in a understanding that forms the worlds largest airline, the dual carriers pronounced today.
The dual airlines will combine in an all-stock understanding to form an airline that carries the United Airlines brand. The joined airline will be formed in Chicago.
Continental arch senior manager Jeff Smisek will run the total airline with over $29 billion (�19 billion) in annual revenue.
UAL CEO Glenn Tilton will be non-executive chairman. Smisek would additionally turn senior manager authority of the house on Tiltons ceasing to be non-executive chairman.
The name of the holding association would be United Continental Holdings Inc, and the name of the airline will be United Airlines.
Continental shareholders will embrace 1.05 shares of United usual batch for each Continental usual share they own. Based on Uniteds batch cost of $21.83 on Friday afternoon, and Continentals 139.6 million superb shares as of Apr 21, United would compensate $3.2 billion for Continental.
Based on stream shares outstanding, a total association would have 314.5 million shares, and UAL shareholders would own rounded off 55 percent of the new company.
If the understanding receives supervision approval, it would beget $1-$1.2 billion in income and cost benefits for the total association by 2013, the airlines said. The companies design to finish the contract in the fourth entertain of 2010.
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