TWA reached agreement with Icahn and Texas Air.

Under the agreement, a group led by financier Carl C. Icahn will acquire by merger the shares of Trans World Airlines common stock that it does not already own. Texas Air will receive $43 million for giving up an option to buy 6.4 million shares of TWA stock. Icahn controls more than 52% of TWA’s stock, but the airline had been locked into a contract signed in July to merge with Texas Air. The agreement also calls for termination of the TWA-Texas Air merger contract upon the signing of a new merger agreement between TWA and an Ichan affiliate, the company said.