Continental mulls alternatives after Delta merger

NEW YORK (Reuters) - Continental Airlines Inc (CAL.N) said on Tuesday it will review strategic alternatives following news that Delta Air Lines Inc (DAL.N) will buy Northwest Airlines Corp NWA.N.

Delta said Monday night it will buy Northwest for more than $3 billion in a bid to create the world's biggest airline, as carriers seek to counter skyrocketing fuel prices and a weak economy.

Continental said the proposed deal enables it to redeem the "golden share" that Northwest owns in Continental and that Continental will also review its participation in the alliance it has with Northwest, Delta and SkyTeam.

Analysts have said a Delta/Northwest deal could accelerate a merger of Continental and United Airlines, whose parent is UAL Corp (UAUA.O).

(Editing by Jeffrey Benkoe)