TWA <TWA> SEES BENEFITS IN USAIR <U> MERGER
Trans World Airlines Inc, which
disclosed that it does not intend to seek control of USAir
Group at this time, said it still believes a combination of the
two airlines would have benefits to both.
    In a filing with the Securities and Exchange Commission,
TWA, which is controlled by Carl Icahn, said it continues to
closely watch the developments of USAir, which has an agreement
to acquire Piedmont Aviation Inc <PIE>.
    TWA said it spent 178.2 mln dlrs to acquire its 4,043,200
USAir shares, which amount to 14.8 pct of its total outstanding
common stock.
    TWA said it would not buy more USAir Group stock, at least
for the moment.
    But it said it still believes a TWA-USAir combination would
"create certain synergies that would be mutually beneficial to
both carriers."
    TWA stressed that it reserved the right to revive its
takeover attempt and said it may continue to explore the
feasibility and strategies of gaining control of USAir.
    Further purchases of USAir stock would require the approval
of the Department of Transportation, TWA said.
    Because of Department of Transportation rules, TWA also
said it put its USAir stock into a voting trust with Fleet
National Bank as the voting trustee.
    The voting trust agreement requires the bank to vote in
favor of any acquisition agreement between TWA and USAir and to
opposed any other merger of USAir.
 Reuter
