Independent Group Makes Bid For TWA

An independent investor group bid to buy Trans World Airlines Inc. for substantially more cash than American Airlines parent AMR Corp. offered for the bankrupt carrier. St. Louis-based TWA, the No. 8 U.S. airline, said Jet Acquisitions Group offered $889 million, compared with the $500 million offer from American. Jet Acquisitions was previously described by a spokesman as a group of “aviation experts and major investors” but has kept the identities of its members secret. TWA has agreed to be bought by American, the world’s second-largest airline, but ultimately the Bankruptcy Court will decide which offer is the best way TWA can be reorganized and continue as a going concern. “There’s more to what we’re bidding than just the cash,” American spokesman Al Becker said. He said American wasn’t aware of any other bidder having put in the research American did on its bid, which would preserve most of TWA’s operations and offer employment to its 18,000 unionized workers. American’s $500-million offer included $200 million for TWA’s 26% stake in the Worldspan computer reservation system, while the Jet Acquisitions offer included $205 million for Worldspan. A buyer also would assume about $3 billion in TWA debt. A formal auction for TWA will be held Monday, and a Bankruptcy Court hearing is scheduled for March 9 to determine the winning bid.