Midwest CEO Says "Our Shareholders Have Spoken"
Imagine, if you will, a cheesy soap opera-style
drama... airing on CNBC. Midwest Air Group, Inc., parent company of
Midwest Airlines, has been fending off the advances of rival suitor
AirTran for months -- locked in competition for the affections of
highly desirable Midwest shareholders. In Thursday's episode, we
find AirTran has managed to catch the eye of the shareholders, much
to Midwest's chagrin.
In a proverbial slap in the face, the shareholders told Midwest
they rather like the advances of the new suitor, and would like to
hear what it has to say.
Based on a preliminary review of the proxies voted at Thursday's
annual meeting, shareholders have apparently chosen to elect the
three directors nominated by AirTran Holding -- John Albertine,
Jeffrey Erickson, and Charles Kalmbach -- to Midwest's board of
nine directors, according to the carrier.
As ANN reported, two
shareholder advisory firms recommended Midwest Air Group
shareholders replace a few members of their board of directors with
a slate nominated by AirTran, according to the Associated Press.
Midwest wholeheartedly disagreed with those recommendations, and
its board continued its stance of across-the-board rejection of all
AirTran offers, contending the company would be more profitable by
itself.
The results of the election of directors will be official when
the Inspector of Election provides the Midwest corporate secretary
a certified report of election results, which are expected June
26.
"This is an important victory for all Midwest shareholders,"
said Joe Leonard, AirTran's chairman and chief executive officer.
"There is clearly a strong desire among Midwest shareholders for
positive corporate governance change and for Midwest to fully and
fairly consider the merits of a combination with AirTran."
Midwest also announced its board determined it will permit
AirTran to make a presentation to the Midwest Air Group board
regarding its proposal, but insisted it has not decided to engage
in actual negotiations with the carrier. No date for the session
has been set.
Timothy E. Hoeksema, chairman and chief executive officer,
stated that the election of directors constitutes a definitive
action by shareholders.
"While we are disappointed by today's results, we recognize that
our shareholders have spoken," he said. "If today's election says
anything at all, it says that our shareholders want us to listen
and that is what we intend to do. The board remains fully committed
to creating value for Midwest shareholders."
The company is planning a comprehensive orientation for the new
directors to take place after the voting results are certified.
"The new directors, along with the entire board, will be fully
accountable to all Midwest Air Group shareholders," said
Hoeksema.
Stay tuned.
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