United, Continental settle lawsuits against merger

August 4, 2010 5:36:58 AM PDT
Houston-based Continental Airlines and United have agreed to disclose more information about their negotiations in order to settle three lawsuits by Continental shareholders. The critics said they were shortchanged by the $3 billion deal to create the world's biggest airline.

The airlines, in regulatory filings yesterday, said that the unhappy Continental shareholders agreed to drop their lawsuits in exchange for the airlines providing more details. One request is how negotiators arrived at the plan to give Continental shareholders 1.05 United shares for each Continental share held.

The combined company will be called United Airlines and based in Chicago.

The plaintiffs sought class-action status for their lawsuits, which were filed in state court in Houston shortly after the deal was announced in early May.

The Justice Department is still weighing antitrust implications of the combination.


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