Pan Am Corp.'s board of directors said Friday it may accept a $375 million takeover offer from Trans World Airlines Inc. but will need short-term financing to complete any deal.

Pan Am chairman Thomas Plaskett said in a letter to TWA Chairman Carl Icahn:"We believe the proposal contained in your letter could form the basis of a combination that would be advantageous to our shareholders, employees and other constituencies."

But he also said that cash would be needed. Pan Am has been having cash problems for many years and recently sold key routes to United Airlines to raise funds.

TWA made its offer to buy Pan Am on Sunday. Pan Am, based in New York, had until Friday to respond to the TWA offer.