UAL Corp. (UAUA)

Glenn F. Tilton, UAL Chairman, President and Chief Executive Officer of United Airlines, a wholly-owned subsidiary of UAL Corporation (Nasdaq: UAUA), has hinted at the benefits of renewing merger talks with Continental Airlines, saying the market had judged in favor of rival Delta’s takeover of Northwest Airlines, according to the Financial Times. “The market capitalisation of Delta is approximately twice the combined market capitalisation of United and Continental,” said Tilton.
Jeff Smisek, President and COO of Continental, has since said that he was “very pleased” to remain independent but would review that position if Delta’s takeover of Northwest resulted in higher earnings and tougher competition. “I think my counterpart [at Continental] has spoken and I think he’s been pretty clear,” Mr Tilton said. “So I accept that as their position and we’re taking full advantage of our partner relationship.” Merger talks between United and Continental ended in April 2008. Continental then left the SkyTeam alliance headed by Delta and Air France, and joined United in the rival Star Alliance.

Feb 16 · 1:47:00 PM
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by Steve Wieczorek