Airlines Trying To Bypass Trial

Six days after the start of an antitrust trial meant to force Northwest Airlines Corp. to give up its 14 percent stake in Continental Airlines Inc., Northwest has agreed to sell part of the holding back to the smaller carrier for $450 million in cash, the airlines said Monday.

The two airlines plan to ask for a seven-day delay in the trial to allow them to finish drafting their agreement. If they can’t reach a deal, the trial resumes Nov. 14.

Northwest bought the stake in Continental in January 1998 in a deal that gave it about 51 percent of Continental’s common stock voting power. The agreement limited for 10 years Northwest’s right to use the voting power.

Still, the Department of Justice filed a suit against the airlines ten months later. The government argued that Northwest’s ownership of the Continental stake would reduce competition.

A final deal, which Northwest and Continental said will close about two months after the definitive accord is reached, must be approved by both airlines’ boards, the Justice Department and certain third parties.