AEROMEXICO JOINS CONTINENTAL AIR <CTA.CN> BID

DATELINE: NEW YORK, OCT 6, REUTER

 Aerovias de Mexico SA said it and a related investor group joined the previously 
announced <Maxxam Inc>-led bid to acquire a controlling interest in Continental 
Airlines by bringing $100 million to the deal.

 With Aerovias de Mexico SA (Aeromexico) and a the related investor group, the 
bid, led by Maxxam Chief Executive Charles Hurwitz, is worth $400 million. It was 
not immediately known if the bid was raised.

 Aeromexico said it will contribute $50 million of its own money to the buyout 
bid, under which it and its investor group plan to acquire six pct of 
Continental's convertible preferred stock or about 20 pct of the carrier's total 
equity.

 Aeromexico said its investment will be structured to conform with existing U.S. 
laws and regulation and will be subject to U.S. Bankruptcy court approval and 
certain other conditions.

 Aeromexico cited the North American Free Trade Agreement as a factor that would 
enhance the deal's advantages, including "savings, synergies and revenue 
opportunities that should arise for both Aeromexico and Continental.

 Besides Hurwitz, the Maxxam buyout group includes Donaldson Lufkin & Jenrette 
and Kidder Peabody & Co.

Reuters, Limited
October 6, 1992, Tuesday, BC cycle
SECTION: Financial Report.