Both the NY Times and WSJ are running articles suggesting that CO may leave SkyTeam and team up with AA and BA.

From WSJ:

Continental Sunday said it was open to other carriers seeking its membership in their respective global airline alliances, which allow carriers to more easily share passengers and give them greater reach around the world. American Airlines parent AMR Corp. has been trying to interest Continental in an alliance that could include both domestic and overseas passengers, said people familiar with the matter.

Continental is currently a member of the SkyTeam alliance. Delta Air Lines Inc. and Northwest Airlines Corp., which have agreed to merge, also are in that alliance. "We are considering alternatives to SkyTeam as we carefully evaluate which major global alliance will be best for Continental over the long term," Mr. Kellner said.