United: Continental Brand Goes Bye-Bye on $29B Merger

[Quiet Flight]

United it is. Continental Brand Goes Bye-Bye on $29B Merger

http://blogs.barrons.com/stockstowa...-goes-bye-bye-on-29b-merger/?mod=yahoobarrons

New paint job:

http://continentalunitedmerger.com/sites/default/files/images/CAL_787-9_Dreamliner_logo.jpg

 

[UALRATT]

United and Continental Announce Merger of Equals to Create World-Class Global Airline

United and Continental Announce Merger of Equals to Create World-Class Global Airline

Today we are announcing a merger agreement with Continental Airlines that will create the world's leading airline.

The new company's corporate and operational headquarters will be in Chicago, and it will maintain significant operations in Houston, which will be the combined company's largest hub. The holding company for the new entity will be named United Continental Holdings, Inc. and the name of the airline will be United Airlines. The marketing brand will be a combination of the brands of both companies. Aircraft will have the Continental livery, logo and colors with the United name, and the announcement campaign slogan will be "Let's Fly Together."

In his e-mail to employees today, Glenn Tilton said, "The results of our work together have been evident in our significantly improved and consistent performance and our recognition in the marketplace. Our performance puts us in the position today to announce a merger of equals with Continental Airlines and on track to be the world's leading airline, which is exactly where our company should be. By merging with Continental, we will have the world's best network, and will be well positioned to compete with global carriers. We will continue to serve every destination our two airlines fly to today."

Employees will benefit from improved long-term career opportunities and enhanced job stability by being part of a financially stronger and more geographically diverse carrier that is better able to compete successfully in the global marketplace.

We expect minimal impact to our frontline employees with any reductions coming principally through retirement, attrition and voluntary programs. We expect this will result in some reductions in the salaried and management work force for both Continental and United.

Glenn will serve as non-executive chairman of the Board of Directors and Jeff Smisek, Continental's chairman, president and CEO, will be CEO and a board member of United. The board will also comprise six independent directors from each carrier and two labor directors.

Our combination with Continental brings together the two most complementary networks of any U.S. carriers, with minimal domestic and no international route overlaps. We will offer enhanced service to Asia, Europe, Latin America, Africa and the Middle East from well-placed hubs on the East Coast, West Coast, and Southern and Midwestern regions of the United States. We will have 10 hubs, including hubs in the four largest cities in the United States, as well as Narita and Guam, and will provide enhanced service to underserved small- and medium-sized communities.

United shareholders would own approximately 55 percent of the equity of the combined company and Continental shareholders would own approximately 45 percent, including in-the-money convertible securities on an as-converted basis.

Together, we will have the most modern, fuel-efficient fleet (adjusted for cabin mix) and the best new aircraft order book among major U.S. network carriers. We will also have the financial strength to enhance our customers' travel experience and will be able to invest in globally competitive products, upgrade technology, refurbish and replace older aircraft, and implement the best-in-class practices of both airlines.

The merger will create the industry's leading frequent flyer program, offering vast opportunities for customers to earn and redeem miles, including on Star Alliance partners.

The merger has been approved unanimously by the boards of both companies and is conditioned on approval by the shareholders of both companies, receipt of regulatory clearance, and certain other closing conditions. We expect to complete the transaction in the fourth quarter of 2010.

Additional information, including frequently asked questions, is available on SkyNet, along with a link to www.unitedcontinentalmerger.com, a dedicated Web site for employees, customers and other stakeholders. "Let's Fly Together" will be updated regularly with new developments

 

[jonjuan]

Anyone else see Gordon Bwthune wig out on the CNBC interview this morning. He basically said that the merger will be a disaster for CAL and its employees.

 

[BID]

Did he really say that? I always thought he wanted a merger with UAL.

On the other hand, it looks as if Jeff does not care about labor right now. Unlike the Delta merger, labor does not have to be on board. The merger train will continue with our without you labor!

 

[bluechunks]

Anyone else see Gordon Bwthune wig out on the CNBC interview this morning. He basically said that the merger will be a disaster for CAL and its employees.

Here's actual video:

http://www.cnbc.com/id/15840232/?video=1484027280&play=1

(And it seems like Gordo has a slightly different take than you claimed. )

 

[Jetjockey]

Anyone else see Gordon Bwthune wig out on the CNBC interview this morning. He basically said that the merger will be a disaster for CAL and its employees.

Huh??/ What interview were you watching? Sure you weren't dozing on the couch while that was on? Have another cup of coffee amigo.

 

[d.fitz]

Anyone else see Gordon Bwthune wig out on the CNBC interview this morning. He basically said that the merger will be a disaster for CAL and its employees.

That would be called "spinning" what was actually said..... wig out, and disaster? :laugh:

 

[manflex srs rwy]

I don't know about 'wigging out' - he actually seemed supportive of the whole thing: "If anyone can get this done, it's Jeff Smisek." But it was fun watching him lose his earpiece. (3 minute mark)