May Join Third-Party Bid To Purchase Carrier

The theatrics surrounding a potential buyout of Midwest Airlines became a bit more dramatic this week... as Northwest Airlines is reportedly considering a passive stake in the airline, as part of a larger buyout bid.

The Wall Street Journal reported Friday the Eagan, MN-based airline is mulling over the move, to protect its recent marketing agreement with the smaller airline. An undisclosed source says Northwest would have minority interest in Midwest, as part of another as-yet-unnamed third party's bid to buy Midwest... and thwart rival AirTran's efforts to do so.

As ANN reported last week, after months of reluctance the board at Midwest agreed to consider AirTran's buyout offer -- as well as proposals from any other interested suitors. As many as four parties are reportedly interested in the airline; the Milwaukee Journal Sentinel reported Friday that Northwest is among the interested parties.

AirTran's current offer of $15-a-share is believed to be the largest offer for Midwest so far. Airline spokesman Tad Hutcheson stressed Friday AirTran doesn't plan to raise the bid... and chastized Northwest for its apparent involvement in the process.

"There is no strategic value [for Northwest] in Milwaukee, just a defensive one," said Hutcheson. Northwest already maintains a strong presence in Milwaukee, Midwest's home airport.

Redundant operations and fleet incompatibilities make Midwest an unattrative candidate for a complete Northwest takeover... which is why the airline is looking at a smaller role.

Midwest unveiled plans for a broad marketing agreement with Northwest in May, as part of its stand-alone plan to fend off AirTran's takeover bid.

FMI: www.nwa.com, www.midwestairlines.com, www.airtran.com