United, US Air Talks 'Very Serious': Report
CHICAGO (TheStreet) -- Talks between United Airlines (UAUA) and US Airways (LCC) have become "very serious," according to a published media report.
However, the discusssions are still at a "very sensitive stage," said the report, published Saturday on
The Wall Street Journal's
Web site.
The report cited one person close to the transaction, who said that it the talks could just easily fall apart as lead to a transaction between the two airlines.
If a deal is reached, it will be an all-stock transaction, and United will be the surviving airline, the person said. An earlier
Reuters
report also said talks revolved around an all-stock deal.
United and US Airways shares surged Thursday
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on speculation about a merger of the two legacy carriers. Shares of
Continental
(CAL) - Get Caleres, Inc. Report
also rose, because there has also been merger speculation about it and United.
But the head of the pilots union at United this week
downplayed reports of merger discussions
between his airline and US Airways.
Shares of United Airlines closed Friday up 27 cents at $20.50. Shares of US Airways finished the session down 23 cents at $7.32.
This article was written by a staff member of TheStreet.com.
