Wants To Make Sure Shareholder Interests Are Considered 

Talks of a possible buyout of beleaguered regional carrier Mesaba Airlines have raised concerns for investors, who fear a takeover would result in devalued stock prices, and may even raise conflict-of-interest questions.

The St. Paul (MN) Pioneer-Press reports Riley Investment Partners, which owns just over five percent of Mesaba parent company MAIR Holdings Inc., wants assurances independent shareholder interests will be represented in negotiations. Riley also wants any deal reached between the two sides to require shareholder approval.

"We will do what we have to do to protect our interest," John Ahn, a principal of Riley Investment Partners, said Tuesday.

In a letter to MAIR officials, Riley said several other shareholders share its concerns. Together, Riley and those parties hold about 12 percent of MAIR... far less than Northwest, MAIR's largest shareholder, at 28 percent.

And that, says Riley, represents "a clear conflict of interest."

No formal deal for Northwest to purchase Mesaba has been announced.

As Aero-News reported last month, the two sides confirmed talks about a possible takeover of the regional airlines, which flies all its routes for Northwest.

FMI: www.mesaba.com, www.nwa.com