I do not think this deal is over yet........
"American Antitrust Institute president Albert Foer says: "I don't see how Northwest can invest 'passively' in a rival." Raymond James & Associates analyst Jim Parker suggests Northwest is only using TPG as "a front" to buy Midwest and keep AirTran's low-fares competition out of its home region. "
JP Morgan analyst Jamie Baker suggests AirTran does not need Midwest and will seek larger deals within the next two years. AirTran had tried in late 2004 to buy ATA Airlines and its Chicago Midway hub, but private equity firm Matlin Patterson instead purchased the carrier in a deal including codeshare partner Southwest Airlines
Midwest Airlines sale could lead to merger
McClatchy Newspapers
Published
Monday, August 20, 2007
MILWAUKEE - Midwest Airlines will continue to fly solo with its impending sale to an investors group, but the transaction might eventually deliver Milwaukee’s hometown airline to another company with a less-appealing reputation.
Northwest Airlines Corp. could eventually take over Midwest Air Group Inc., corporate parent of Midwest Airlines and Midwest Connect, for Midwest Air’s new owner to cash out its investment, it was disclosed Friday.
Northwest is part of an investors group, organized by TPG Capital, that has agreed to buy Midwest Air for $17 a share, or $450 million. That sale, announced late Thursday night, requires shareholder and regulatory approval and is expected to close by the end of the year. The sale to TPG Capital, a private equity firm based in Fort Worth, Texas, will allow Midwest Airlines and Midwest Connect to keep their identities as independent carriers, said Timothy Hoeksema, Midwest Air chairman and chief executive officer
I read yesterday but can't find an arcticle from TPG saying the investment group could be looking at a cash deal for their part of Midwest, leaving NWA with ownership. This buyout was obiviously a veiled takeover by NWA to keep AIRTRAN out. This still has to pass antitrust test.
I think the dicision is not in. If I had it I would sell MEH while it is high because if this does not pass the antitrust then it may become a fire sale.