This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

'New' United Shares: Analysts Split

Stocks in this article: UAUA CAL DAL

CHICAGO ( TheStreet) -- Shareholders of United (UAUA) and Continental (CAL) separately approved a merger of the two carriers Friday.

The new United will be the world's largest airline. It will retain its Chicago headquarters but its CEO, Jeff Smisek, will come from Continental.

United and Continental

Because the 2008 merger of Delta (DAL) and Northwest proceeded smoothly, expectations are high for the current effort, though Dahlman Rose analyst Helane Becker has a hold on the shares. "We believe 2011 will be a relatively confusing year for the merged company, and as a result there is no hurry to buy these shares," she wrote in a recent report.

On the other hand, Avondale Partners analyst Bob McAdoo hold United with an outperform. He recently wrote that "legacy airlines are producing margins well above anything the industry has seen in recent years."

Similarly, Standard & Poor's analyst Jim Corridore has a strong buy on Continental shares. He said that the merger creates "an extremely strong global route network with opportunities for cost and revenue synergies," and also that "having one fewer competitor will help the entire industry."

In Houston, the merger was favored by more than 98% of the votes cast, as 75% of the outstanding shares were voted in favor. "We are grateful for our stockholders' strong vote of confidence in this merger," said Continental CEO Jeff Smisek in a prepared statement. United shareholders also backed the deal by more than 98%.

The merger is expected to close by Oct. 1. Until it closes, United and Continental stock will both continue to trade. Then Continental shareholders will get 1.05 shares in the new company for each of their existing shares.

-- Written by Ted Reed in Charlotte, N.C.

>To contact the writer of this article, click here: Ted Reed

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs