(Bloomberg) — UAL Corp.’s United Airlines and Continental Airlines Inc. tentatively agreed on an exchange ratio in their all-stock merger of 1.05 shares of UAL for each Continental share, a person with knowledge of the matter said.
United Chief Executive Officer Glenn Tilton and CEO Jeff Smisek of Houston-based Continental have briefed their boards on the terms, said the person, who asked not to be identified because details aren’t public. The CEOs reached their accord at a meeting on April 27, the person said.
An announcement of the merger may come next week, people familiar with the matter have said. UAL directors have scheduled a meeting for today, people have said.
Jean Medina, a spokeswoman for Chicago-based United, and Continental’s David Messing didn’t immediately return messages seeking comment. CNBC reported the ratio earlier today.
–With assistance from Mary Jane Credeur in Atlanta and Mary Schlangenstein in Dallas. Editors: Ed Dufner, John Lear
To contact the reporter on this story: Zachary R. Mider in New York at zmider1@bloomberg.net
To contact the editor responsible for this story: Jeff St.Onge at jstonge@bloomberg.net;

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