Continental, UAL Set to Announce Merger

Continental Airlines and United Airlines are expected to announce Monday they are merging to form the world's largest airline, a report says.
By Joseph Woelfel ,

HOUSTON (

TheStreet

) --

Continental Airlines

(CAL) - Get Report

and

UAL's

( UAUA) United Airlines are expected to announce Monday they are merging to form the world's largest airline, the

Wall Street Journal

reports.

UAL's board of directors is meeting Friday, while Continental's board is meeting Friday and Sunday to discuss the deal, the

Journal

reports, citing people familiar with the matter.

The talks could still fall apart as they did in 2008, when Continental backed away, these people said.

A Continental and UAL merger would make the airline the biggest in the world by number of passengers carried, putting it ahead of

Delta

(DAL) - Get Report

.

The Continental/UAL talks came quickly after

US Airways

(:CC)

broke off merger talks

with United about a week ago.

-- Written by Joseph Woelfel in New York.

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