Airline merger 'close'

United Airlines and Continental Airlines are moving closer to announcing as early as Monday that they will merge to form the world's largest carrier by passenger traffic, according to sources.

Continental's board plans to meet today and Sunday to consider a deal, according to a person familiar with the discussions.

Another person briefed on the talks said negotiators had agreed that the combined company would be called United, it would be based in United's home town of Chicago, and run by Continental chief executive Jeffery Smisek, with United CEO Glenn Tilton as chairman.

The companies declined to comment today.