United, Continental closer to merger deal

UAL Corp.'s United Airlines and Continental Airlines Inc. have moved closer to solving differences in valuing their merger, paving the way for a deal as early as next week, a person familiar with the matter said.

Continental's board was meeting today to discuss a tie-up, and UAL directors are to meet on April 30, said people familiar with the talks, who declined to be identified because the discussions are private. A merger would create the world’s largest airline by passenger traffic.

Additional board meetings at Houston-based Continental are planned this week to lead up to final approval of a merger agreement this weekend, one of the people said.

The companies have agreed to an all-stock merger, with Continental Chief Executive Officer Jeff Smisek to become CEO and United's Glenn Tilton becoming chairman, people have said.

Jean Medina, a spokeswoman for Chicago-based UAL, didn't immediately return a call seeking comment. David Messing, a Continental spokesman, declined to comment.