Continental-United next??

Continental and United ready…

NEW YORK (Reuters) – Continental Airlines (NYSE:CAL – News) and United Airlines (NasdaqGS:UAUA – News) have laid most of the groundwork for a merger, two people briefed on the matter said, and could have a deal ready “pretty quickly” if Delta Air Lines and Northwest Airlines announce a tie-up, one of them said.

Continental, which has said it would prefer to remain independent unless the competitive landscape changes, plans to get back to the negotiating table with United if a merger between Delta (NYSE:DAL – News) and Northwest (NYSE:NWA – News) is announced, both sources said.

Both the people requested not to be identified because of the confidential nature of the talks.

A Delta-Northwest merger, expected to be announced late Monday or Tuesday, would free Continental to pursue a merger with United because Northwest would forfeit a special “golden share” that gives it effective veto power over a Continental transaction.

Executives have said that if Northwest agrees to a deal, Continental can buy back that blocking share for $100.

Pilots unions at United and Continental have also held merger-related discussions, and merging those two work forces is not likely to be as major a hurdle as it has been with Delta and Northwest, the two sources said.

…

A merger between United and Continental, the second and fourth-largest U.S. airlines respectively, would surpass a Delta-Northwest combination as the world’s largest carrier.

Continental, whose shares closed at $21.89 on the New York Stock Exchange, has a market cap of $2.13 billion.

United Airlines, which closed at $23.61 on Nasdaq, has a market cap $2.72 billion.

Each of the airline stocks rose about 2 percent in post-market trade.

UBS analyst Kevin Crissey said in a report earlier this month: “We believe if Delta and Northwest get together, United and Continental will follow shortly thereafter.”

“Additionally, we expect that Continental would receive a premium in such a deal.”

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So, should this happen, which name/brand will survive…or will it be named/branded something new?

For the record, I’ve always loved Continental’s ‘livery’ and find it far more eye-catching than United’s. It would be a real shame to see it no more.