Lufthansa, Davis Make a Bid for Continental : Airlines: The $400-million offer is the fourth since July and matches the largest to date.

HOUSTON —  Lufthansa German Airlines and Los Angeles financier Marvin Davis became the latest bidders for Continental Airlines, submitting a $400-million joint proposal Wednesday for the troubled carrier.

It isn’t the first time Davis has shown interest in buying an airline. Several years ago, the former owner of 20th Century Fox made separate, unsuccessful bids for the parent companies of Northwest Airlines and United Airlines.

The Lufthansa-Davis bid is the fourth offer made for the Houston-based carrier, which is in the midst of bankruptcy reorganization. It is the same amount as a third proposal submitted in late August, which has been the highest bid.

Lufthansa issued a statement saying the joint qualifying bid “allows both parties to now conduct a detailed financial analysis of Continental Airlines Holdings Inc. to determine if they will seek an ownership stake in the carrier.”

The bid submitted to Continental’s board would invest $100 million in cash for equity of the newly reorganized Continental and arrange the purchase of $300 million in debt securities.

“We believe our proposal is superior to the others the company has received in that Lufthansa and Davis represent a unique combination of airline expertise and financial wherewithal,” said a statement issued by Davis’ public relations firm in New York.

Continental, which has been in Chapter 11 bankruptcy reorganization since December, 1990, had no immediate comment on the bid. “Here at the headquarters of the airlines we have not received anything yet, so we have no comment on it,” Continental spokesman Art Kent said.

The bidding began in July with a $350-million offer from a group led by financier Charles Hurwitz, chairman of Houston-based Maxxam Inc.

Next came Houston financier Alfredo Brener, a Mexican national, with a $385-million offer, followed by the $400-million bid submitted by Air Canada and a group led by a pair of Ft. Worth, Tex., investors.

In August, U.S. Bankruptcy Judge Helen Balick urged any would-be bidders to come forward, saying she wanted to confirm Continental’s bankruptcy reorganization by December.

U.S. law forbids foreign companies from owning more than 49% of an airline’s stock and 25% of its voting shares, but Davis’ involvement apparently would circumvent that problem. Davis is chief executive of the Davis Cos.

In a separate matter Wednesday, a U.S. Bankruptcy Court judge approved a settlement that covers a fraction of a $935-million shortfall in the pension funds of Continental and defunct Eastern Airlines.

Continental and the federal Pension Benefit Guaranty Corp. agreed to the settlement late last month. Of its total claim, the pension agency will get an estimated $122 million, according to testimony Wednesday.