Continental Airlines and United Airlines are expected to announce a merger on Monday

Continental Airlines (Houston) and United Airlines (UAL Corporation) (Chicago) are expected to announce that they are merging to form the world’s largest airline on Monday, the Wall Street Journal reported on Thursday, citing unnamed sources via this report in Reuters.

Continental’s board is expected to meet today and Sunday, and United’s board would also meet today, the newspaper said on its website.

United declined to comment and Continental did not immediately respond to a request for comment.

Meanwhile, a source close to the situation told Reuters that concern over the share-price ratio to be used in a potential stock swap was “no longer an issue” and added that an announcement of the deal would likely be made early next week.

If announced and approved, the Continental Airlines brand would be retired. The new merged airline would be known as United Airlines.

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Copyright Photo: Antony J. Best. The Continental “golden globe” color scheme, introduced in 1991, has always been one of the more popular airline brands. Continental has also been rated high by passengers compared to most U.S. airlines. However its days may be numbered. Boeing 757-224 N17122 (msn 27564) gracefully takes to the skies at Gatwick Airport near London. Both companies operate the Boeing 757.