http://houston.bizjournals.com/houston/stories/2010/05/03/daily51.html?ana=yfcpc
U.S. Congressman Jim Oberstar is asking the government to take a hard look at the planned merger between Continental Airlines Inc. and UAL Corp. Meanwhile, both airlines’ stocks are taking a beating in the wake of the announcement of their planned merger.
On May 3, Houston-based Continental (NYSE: CAL) and Chicago’s UAL (NASDAQ: UAUA), parent of United Airlines, announced the $3-plus billion deal that would create the world’s largest airline to be named United.
The merger still needs approval from both antitrust regulators and shareholders. In a conference call earlier in the week, the companies’ top executives said they planned to put the merger in front of shareholders for a vote in September and officially close the deal by year-end.
On May 5, Oberstar (D-MN), wrote a letter to the U.S. Department of Justice asking its antitrust division to block the proposed merger between the two airlines.
In the letter obtained by the Houston Business Journal, he wrote that the merger “will move the country far down the path of an airline system dominated by three mega-carriers.”
“This path began with the approval of the Delta-Northwest merger in 2008, which I warned would create great pressure for other large airlines to merge,” he added.
He also raised concern over the combined company's effect on airline competition. In merger materials, the airlines have said few of their domestic routes overlap.
Earlier this week, U.S. Congresswoman Sheila Jackson Lee (D-TX), who represents 18th district, too vowed to scrutinize the deal. Jackson Lee is also chairwoman of the transportation security and infrastructure subcommittee of the Homeland Security Committee.
Continental’s stock had dropped by more than 12.5 percent to $17.62 by Thursday afternoon before closing at $18.60. Shares of UAL had plunged 14 percent to $17 before closing at $17.97. Both stocks are down several dollars compared to their prices before the merger was announced.
Read more: Continental-United merger gets opposition from Rep. Oberstar - Houston Business Journal:
U.S. Congressman Jim Oberstar is asking the government to take a hard look at the planned merger between Continental Airlines Inc. and UAL Corp. Meanwhile, both airlines’ stocks are taking a beating in the wake of the announcement of their planned merger.
On May 3, Houston-based Continental (NYSE: CAL) and Chicago’s UAL (NASDAQ: UAUA), parent of United Airlines, announced the $3-plus billion deal that would create the world’s largest airline to be named United.
The merger still needs approval from both antitrust regulators and shareholders. In a conference call earlier in the week, the companies’ top executives said they planned to put the merger in front of shareholders for a vote in September and officially close the deal by year-end.
On May 5, Oberstar (D-MN), wrote a letter to the U.S. Department of Justice asking its antitrust division to block the proposed merger between the two airlines.
In the letter obtained by the Houston Business Journal, he wrote that the merger “will move the country far down the path of an airline system dominated by three mega-carriers.”
“This path began with the approval of the Delta-Northwest merger in 2008, which I warned would create great pressure for other large airlines to merge,” he added.
He also raised concern over the combined company's effect on airline competition. In merger materials, the airlines have said few of their domestic routes overlap.
Earlier this week, U.S. Congresswoman Sheila Jackson Lee (D-TX), who represents 18th district, too vowed to scrutinize the deal. Jackson Lee is also chairwoman of the transportation security and infrastructure subcommittee of the Homeland Security Committee.
Continental’s stock had dropped by more than 12.5 percent to $17.62 by Thursday afternoon before closing at $18.60. Shares of UAL had plunged 14 percent to $17 before closing at $17.97. Both stocks are down several dollars compared to their prices before the merger was announced.
Read more: Continental-United merger gets opposition from Rep. Oberstar - Houston Business Journal:
