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Wednesday Aug 20 2008
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Continental abandons talks with United
Continental Airlines brought its merger talks with United Airlines to an abrupt end on Sunday amid concerns for the rival US carrier’s financial strength in the face of record fuel costs and waning demand for air travel. United and Continental, which have been in preliminary discussions for more than a year, stepped up the negotiations this month following Delta Air Lines’ agreement to merge with Northwest Airlines. But United stunned investors last week with a wider-than-expected quarterly loss, triggering a 37% drop in its shares and casting doubt on its financial condition.
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