Airlines Surge on Talk of Deals

Wall Street rushes to buy as reports say United, Continental in talks on a combination; AirTran makes a bid for Midwest

Renewed speculation about airline industry consolidation sent the sector higher yet again on Dec. 13. United Airlines (UAUA) and Continental Airlines (CAL) are in early talks about a potential combination, according to reports in The Wall Street Journal and The New York Times. Meanwhile, AirTran Holdings (AAI) announced a $290 million bid for Midwest Air Group (MEH), which was rejected.

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