The management of United Airlines and Continental Airlines reportedly have agreed to a merger in a stock-swap deal valued at $3.2 billion, based on share prices at Friday's closing. United's stockholders would end up with 55% of the merged entity, with Continental's shareholders getting the remaining 45%. Company sources said that by 2013, the combination would produce cost savings and new revenue of between $1 billion and $1.2 billion a year. The merger would create the world's biggest airline.

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