Reference: Certified Financial Statements / SEC filings for UNITED CONTINENTAL HOLDINGS, INC. & Other
1. How was the merger between United and Continental structured? Which airlines is the survivor? Who holds what stock after the merger?
2. What accounting method was used to account for the merger of Continental and United? What are the reporting implications of the chosen accounting method?
3. What were the approximate amounts for the (a) Recorded value of the acquisition of the surviving firm's books? (b) Fair value of the acquisition?
4. What items of value did Continental bring to the merger that will not be recorded in the acquisition?
5. How will the items of value that Continental brought to the merger in #4 affect future reported income for the combined firm?
6. In your opinion was this a successful merger? Which company do you think gained the most benefit?