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P.M. BRIEFING : New Offers by Pan Am, Machinists, Davis Heat Up Northwest Bidding

June 16, 1989|From Times wire services

MINNEAPOLIS — Pan Am Corp. submitted a revised bid for Northwest Airlines today that includes an additional $200 million in equity while oil billionaire Marvin Davis said he has revised his offer for the carrier for the last time.

Northwest's machinists' union also met today's deadline for revised offers, the union's president said, but previous bidder MEI Diversified of Minneapolis said it would not make a new offer.

Northwest parent NWA Inc. had set today as a deadline for revised offers after rejecting all offers in the first round of bidding.

Northwest stock rose 12 1/2 cents to $107.62 1/2 a share today in mid-morning trading on the New York Stock Exchange. Analysts have said the winning bid could be as high as $120 a share, but the company repeatedly has said it may not sell the airline.

Pan Am Chairman Thomas Plaskett said his revised bid for the nation's fourth-largest airline includes $200 million in equity from Corporate Partners, an investment fund organized by Lazard Freres & Co. and managed by Lester Pollack and Ali E. Wambold. That brings the total amount of equity in the Pan Am proposal to $600 million, Plaskett said.

A spokesman for Davis, who opened the bidding for Northwest on March 28 with an offer of $2.7 billion, or $90 a share, said the oil mogul has submitted a "new and very full" offer. The spokesman said it was Davis' final bid for the company.

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