NEW YORK -- Trans World Airlines Inc. has agreed in principle to be acquired by Texas Air Corp. and New York Air for $793.5 million, the New York Times reported Thursday.
Texas Air owns Continental Airlines and New York Air.
Quoting sources, the Times said Texas Air's offer amounts to $23 a share in cash and debt securities, exceeding a $22 package offered by Resorts International Inc.
TWA spokesman Jerry Cosley refused to confirm or deny the report, but said there would be an announcement later Thursday.
'We have never acknowledged any of Wall Street's rumors, and we're not going to start now,' he said.
He added that TWA had requested that trading in its stock be suspended.
In trading on the New York Stock Exchange Wednesday, TWA's stock closed at $19.625, down 25 cents.
Texas Air also owns New York Air, which it founded in 1980.
Texas Air was one of the original bidders for TWA, with an offer of $20 a share. The Times report said Texas Air raised the bid by $3 in recent days, and quoted sources as saying $19 of that amount would be in cash and the rest in debt securities.