Howard's Business Report: United, Continental merger - Hawaii News Now - KGMB and KHNL

Howard's Business Report: United, Continental merger

(HawaiiNewsNow) - I find a teaching moment in the progress of the announced merger of United Airlines and Continental Airlines. As you know, the deal was concluded over the weekend and announced Monday morning. United shares valued higher by a nickel on the dollar. Almost every time two publicly traded companies merge, some lawyer rounds up shareholders to sue on the grounds that the price isn't right. Those who conclude the deal always saw the lawyer is shaking them down for money to go away, but the lawyer says it's a legitimate protest to register if the parties getting less money were not fulfilling their fiduciary duty to their shareholders. So it is that the New York law firm of Levi Directors of Continental Airlines to see if they failed in their duty and if United is paying too little. It invites Continental shareholders to contact them if they have questions, which I assume means that if you would like to hear a sales pitch to join in a suit. I'll watch this to see if they're able to pressure United into upping its bid. Please note it's hard to say what Continental stocks are worth. Would it have risen more without a merger agreement? Or is there more upside potential in the merger? Discuss amongst yourselves.

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