SAS Is Joining One of Bidders for Continental : Airlines: The Scandinavian carrier’s hookup with a Houston businessman may lead to a new, higher offer.

Scandinavian Air Systems announced Monday that it will team up with a Houston businessman who is among five bidders for Continental Airlines.

SAS, which owns nearly 18% of Continental’s stock, said it will work with Houston Air Inc. to acquire the Houston-based carrier, which is in the midst of bankruptcy reorganization.

Four other bids have been submitted, with Houston Air’s $385-million offer the second lowest.

Spokesman John Kutler would not say whether Houston Air’s bid will be increased now that SAS is involved, but the two companies have asked Continental for a 10-day extension to “prepare a detailed joint proposal to purchase the airline.”

Continental spokesman Ned Walker had no comment on the announcement by SAS and Houston Air, which is owned by Alfredo Brener, a Mexican national living in Houston.

Continental has asked for more time to file a reorganization plan with the bankruptcy court in Wilmington, Del. U.S. Bankruptcy Judge Helen Balick is to rule on the 45-day extension request today, the day the latest extension is to expire.

In addition to SAS joining the bid, Houston Air said that Northwest Airlines and Mexicana Airlines have agreed to participate in “an advisory capacity.”

“Both have agreed to work with Houston Air and SAS to develop areas of synergy and possible areas of cooperation with Continental,” Houston Air said. “Neither is putting up any capital into the offer.”

Houston Air’s Kutler would not say how Northwest and Mexicana might be involved.

“What Continental lacks is the financial wherewithal to expand and prosper, and that’s what Houston Air, SAS and the cost savings from the advisory partners will provide,” Brener said.

SAS declined comment on the Houston Air announcement.

Although U.S. law forbids foreign companies from owning more than 49% of an airline’s stock and 25% of its voting shares, Kutler said Houston Air and SAS will make a presentation that will be “in compliance” with regulatory guidelines.

The bidding began in July when Houston corporate raider Charles Hurwitz offered $350 million for a controlling interest in the carrier.

Brener made his bid Aug. 7. It was followed by a $400-million offer from Air Canada and a group led by a pair of Ft. Worth investors.

The fourth proposal--also $400 million--came from Lufthansa German Airlines and Los Angeles financier Marvin Davis.

Last week, a group that includes several former Continental employees submitted a $425-million offer.