Business World

Shares of Continental Airlines Inc. reached a new high Thursday after the New York Times reported that the Houston airline carrier has reopened merger talks with United Airlines.

The talks are in early stages and may rapidly fall apart, the New York Times’ sources warned.

Continental (NYSE: CAL), which held merger talks with United in 2008, was reportedly taken by surprise when NYT broke the news of the United-US Airways talks last week.

The company’s shares were already on the rise on April 12 after an analyst upgraded its stock to “buy”from “hold” amidst all the merger talk overnight pay day loans.

Analysts have said that a Continental-United merger would make more sense, giving United routes to South American and access in New York, noted the Times. Chicago-based UAL Corp. (NASDAQ: UAUA) is the parent company of United Airlines.

Continental’s shares were up 2.2 percent, to $23.77, Thursday after having climbed to a new high of $24.29 earlier in the day.

Source