Continental Airlines, Inc. board under investigation for accepting the UAL Corporation offer

May 3, 2010 - PRLog -- After UAL Corporation reportedly agreed to take over Continental Airlines, Inc. an investigation on behalf of current investors in Continental Airlines, Inc.  concerning shareholder claims over possible breaches of fiduciary duty was announced.

If you currently hold shares of Continental Airlines, Inc. , you have certain options and you should contact the Shareholders Foundation, Inc by email at mail@shareholdersfoundation.com or call +1 (858) 779 – 1554.

The investigation by a law firm focuses on potential breaches of fiduciary duty and other violations of state law by the Board of Directors of Continental Airlines, Inc. arising out of their attempt to merge Continental Airlines, Inc.  with UAL Corporation. Continental Airlines, Inc., located in Houston, Texas, is a United States air carrier engaged in the business of transporting passengers, cargo and mail. Continental Airlines, Inc. reported in 2007 Total Revenue of $14.232billion, in 2008 $15.241billion, and in 2009 $12.586billion.

The boards of Continental Airlines Inc. and United Airlines parent UAL Corp. have reportedly approved a merger agreement under which UAL Corp. would acquire all outstanding shares of Continental Airlines, Inc in an all stock deal at an exchange ratio of 1.05 UAL shares for each Continental (CAL) share. Based on UAL Corp's stock (UAUA) price of $21.83 on during the last trading day, and Continental Airline having 139.6 million outstanding shares, United Corp would pay approximately $3.2 billion for Continental Airlines, Inc. or a value of $22.92 per CAL shares.

Shares of Continental Airlines, Inc. (CAL) increased on Friday, April 30, 2010, in response to the merger rumors to over $23.30 per share. Even though CAL shares were down during 2009 to $7.24 per share in March, CAL stock reached a 52weekHigh of $24.29 per share, over $30 per share in 2008, and almost $50 per share in 2007.
   
The investigation by a law firm “concerns whether the Continental Airlines, Inc. Board of Directors breached their fiduciary duties to Continental Airlines, Inc.  stockholders by failing to adequately shop the Company prior to entering into the agreement, whether the Board of Directors breached their fiduciary duties by not seeking a deal that would provide better value of Continental Airlines, and whether UAL Corporation is underpaying for Continental Airlines, Inc. (CAL), thus unlawfully harming CAL stockholders.”

Those who currently hold shares of Continental Airlines, Inc. , have certain options and should contact the Shareholders Foundation, Inc by email at mail@shareholdersfoundation.com or call +1 (858) 779 – 1554.

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The Shareholders Foundation, Inc. is an investor advocacy group. We do research related to shareholder issues and inform investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. At Shareholders Foundation, Inc. we are in contact with a large number of shareholders. We believe that together we can combine the interests of many investors, and use the size of our interest as leverage against the giant corporations. We offer help, support, and assistance for every shareholder. We help investors find answers to their questions and equitable solutions to their problems. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.