Wed, Aug 01, 2007
Board Will Meet With All Parties Interested In Buyout
It appears persistence may soon pay off for AirTran Airways, as
months of dogged pursuit of a merger appear to have finally worn
down the board at Midwest Air Group, owner of Midwest Airlines.
Midwest indicated Tuesday it will consider AirTran's latest $389
million offer, and will soon form a committee of its board of
directors to begin talks with AirTran, reports the Associated
Press. That marks a 180-degree shift from the board's previous
position the airline would function best as a separate entity.
Representatives with Midwest stressed those talks do not mean a
buyout is imminent... but just try telling that to Wall Street.
Shares in the regional airline took off Tuesday, climbing 11
percent on the news of a possible merger.
Curiously, the board also announced Midwest would open talks
with other companies that have expressed interest in buying the
airline... sending a signal to AirTran that it isn't the only
bidder in the game.
The news was welcomed by Octavian Advisors, the largest single
shareholder in Midwest, which has voiced its support for an
AirTran/Midwest merger for some time.
"We think this is a big step forward for effectuating a
transaction," said Richard Hurowitz, chief executive of the hedge
fund.
As you would expect, AirTran CEO Joe Leonard also expressed
optimism. "We look forward to working with them," he said.
Analyst Craig Kennison, with Robert W. Baird & Co., said the
about-face by Midwest is a "clear signal the board has changed its
view on the value of Midwest as an independent airline and sees
more opportunity for shareholders and other constituents in a
financial transaction."
More News
Instrument Runway A runway equipped with electronic and visual navigation aids for which a precision or nonprecision approach procedure having straight-in landing minimums has been>[...]
Aero Linx: Alaska Airmen's Association The Alaska Airmen's Association includes over 2,000 members—we are one of the largest General Aviation communities in the country. We s>[...]
Also: Flt School Security, G600 Steep-Approach, Honduran Aid, PW545D Cert Two aircraft performing at the Fort Lauderdale Air Show clipped wings during a routine last Sunday, spooki>[...]
Also: SkyReach Parts Support, Piper Service Ctr, Airliner Near-Miss, Airshow London The Judge overseeing Icon's convoluted Chapter 11 process has approved $9 million in Chapter 11 >[...]
Also: Paramotor Champ's, Electric Ultralight, ICON BK Update, Burt Rutan at Oshkosh! The Popular Rotorcraft Association is reaching out for help in rebuilding their private runway >[...]