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Associated Press, Published May 02 2010

Source: Continental and United to combine

MINNEAPOLIS - Directors at Continental and United airlines have approved a stock-swap deal that would combine them into the world's largest airline, a source with knowledge of the situation said today.

The deal values Continental at some $3.2 billion.

Today's board actions were described by a person with knowledge of the votes, who declined to be identified because the companies plan an announcement on Monday.

The combined airline will be called United, based in United's hometown of Chicago, and run by Continental CEO Jeffery Smisek. United CEO Glenn Tilton will be chairman.

United, a unit of UAL Corp., is the nation's third-largest carrier by traffic. Continental Airlines Inc., in Houston, is the country's fourth biggest.

Read more in Monday's Forum.