ICAHN WITHDRAWS BID FOR NATIONAL

June 22, 2001 7:48 PM
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Carl Icahn has withdrawn his offer to buy bankrupt National Airlines.

According to a wire report, the billionaire financier withdrew his $181.5 million bid after the Las Vegas-based airline refused to present it to the bankruptcy judge presiding over the company's Chapter 11 reorganization, according to an attorney representing Icahn.

A National spokesman said Thursday the carrier is still in discussions with Icahn. Icahn's attorney, however, said all talks have broken off and that the carrier may be negotiating a deal with the owners of its fleet of leased jets.

The airline announced last week that it was negotiating with a second potential bail-out partner but refused to give details or identify the partner. National said it expects to present the details of that buyout offer to Bankruptcy Court Judge Linda Riegle in Las Vegas next week.

The privately held airline sought Chapter 11 protection in December as a result of rising fuel costs.