News Release
Continental Airlines Increases Size of Stock Repurchase Program
HOUSTON, May 21, 1998 -- Continental Airlines (NYSE: CAI.B and CAI.A) announced today that its Board of Directors has authorized an increase in size of the company's stock repurchase program, from $100 million to $200 million. The company's repurchase program authorizes the repurchase of the company's common stock and convertible securities, and the company has expended approximately $80 million in purchases under the program to date.
In announcing this action, Larry Kellner, Continental's Chief Financial Officer, said "The increase in size of our repurchase program reflects our continued confidence in the value of Continental's common stock. The program is designed to hold the number of diluted shares relatively constant for earnings per share purposes."
Continental currently has outstanding approximately 50 million Class B shares and 11.4 million Class A shares, and convertible securities (8.5% Convertible Trust Originated Preferred Securities and 6 3/4% Convertible Subordinated Notes) convertible into approximately 17.9 million Class Bshares.
The repurchases may be effected from time to time in accordance with applicable securities laws, through solicited or unsolicited transactions in the market or in privately negotiated transactions. No time limit was placed on the duration of the repurchase program. Subject to applicable securities laws, such purchases will be at times and in amounts as the company deems appropriate.