Trans World Airlines
surged more than 50% Tuesday after
, a New York-based holding company with no flight operations, made a second bid to buy the nation's eighth-largest airline.
Global Airlines' latest bid of cash and stock values TWA at $298 million, but it is significantly less than the privately-held company's previous bid.
Global Airlines offered late Monday to buy all outstanding TWA shares for $3.75 a share -- more than a 125% premium based on Monday's closing price. Under the proposed deal, Global Airlines would exchange $2.25 in Global's nonvoting class B shares and $1.50 in cash for each TWA share. TWA shareholders would also have the options of receiving additional Global stock in lieu of cash. TWA has until Nov. 12 to respond to the offer.
In contrast, Global Airlines in late June offered about $380 million, or $5 a share, in stock and cash. TWA had asked the company to provide more details about its plan after it received the initial offer.
Shares of TWA, which is based in Chicago, jumped 87 cents, or 53%, to close at $2.52 on Tuesday.
Julia Bishop-Cross, a TWA spokeswoman, declined to comment specifically about the offer, saying only: "Like all of our competitors, TWA from time to time discusses business transactions with others. We do not discuss or disclose publicly such conversations until and unless specific agreements have been reached."
She added that the airline was prepared to consider any "legitimate expressions of interest by credible parties."
Global Airlines is a little-known company with less than a dozen employees. Listed as a holding company for airlines, Global Airlines has no planes or flight operations.
According to a report filed with
Dun & Bradstreet
, Global Airlines was incorporated in Delaware in 1994, and is headquartered in New York. Emil Bernard, a Los Angeles financier, presides over the company. In the background report, Global Airlines lists only a nonworking cellular telephone number and a toll-free number that advertises adult-oriented telephone services.