Trump Reportedly Approached to Buy Continental

Texas Air Corp. Chairman Frank Lorenzo has met several times with Donald J. Trump in an effort to persuade the New York developer to buy Continental Airlines, according to reports.

But Trump has been reluctant to buy the Texas Air division because he is concerned about Continental’s $2.5-billion debt, its small cash reserves and the need to refurbish many of its planes, according to unidentified sources quoted in the New York Times.

The sources said that while Trump remains interested and believes his name would help the Houston-based carrier win passengers, he has not been convinced that the risks are acceptable, the newspaper said.

Won’t Involve Eastern

In the talks with Trump, said to have been held over the past month, Lorenzo said his negative image has hurt Continental, the sources said.

Lorenzo announced last Thursday that a minority or controlling interest in Continental may be put up for sale.

Strikebound Eastern Airlines, Texas Air’s other airline subsidiary, apparently would not be involved in any transaction involving Continental.