United-Continental at odds over merger - report
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Reports have emerged that claim that the potential merger of United Airlines and Continental Airlines is at risk due to disagreements over how to value their planned no-premium stock merger. According to a Bloomberg report, citing unnamed sources said to be familiar with the negotiations, talks are now focused on what time period to use for the stock-swap ratio. Continental apparently prefers a ratio based on stock prices before 7 April. However United’s stock has outperformed Continental’s since then, and the Chicago-based carrier is pushing for a later date. If the merger succeeds, it would create the world’s largest airline group.
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