Will AirTran finally convince Midwest?
#1
Will AirTran finally convince Midwest?
Just a little update, and then some comments.
AirTran offered $290 million dollars of stock and cash to purchase Midwest. This was around the same time that US Air was offering to purchase Delta. The idea was initially shot down, saying that it undervalued the company. AirTran has since upped that initial offer twice.
The new offer is for increases to $389 million, about a 30% increase over the initial offering.
http://www.reuters.com/article/basic...0070402?rpc=77
That is higher than I think anyone excepted, and an almost certain good deal for Midwest stock holders. Until now, Midwest has kept the list of shareholder's names and numbers secret. However, a court ordered Midwest to share this list with AirTran. By allowing AirTran to educate Midwest share holders about their offer, there is a much larger chance that Midwest shareholders will agree to the buyout.
http://news.moneycentral.msn.com/tic...528&Symbol=AAI
Some points:
The board will make its recommendation by April 13 and requests that shareholders not take action before then.
AirTran is presenting this substantially enhanced offer now in order to give their board and management time to consider it and enter into discussions with us prior to Midwest's May 23, 2007, annual meeting.
Deal or no deal?
AirTran offered $290 million dollars of stock and cash to purchase Midwest. This was around the same time that US Air was offering to purchase Delta. The idea was initially shot down, saying that it undervalued the company. AirTran has since upped that initial offer twice.
The new offer is for increases to $389 million, about a 30% increase over the initial offering.
http://www.reuters.com/article/basic...0070402?rpc=77
The offer represents a premium of 83 percent over the 30-day average closing price of Midwest common stock prior to AirTran's initial proposal.
http://news.moneycentral.msn.com/tic...528&Symbol=AAI
Some points:
The board will make its recommendation by April 13 and requests that shareholders not take action before then.
AirTran is presenting this substantially enhanced offer now in order to give their board and management time to consider it and enter into discussions with us prior to Midwest's May 23, 2007, annual meeting.
Deal or no deal?
#3
The board will make its recommendation by April 13 and requests that shareholders not take action before then.
AirTran is presenting this substantially enhanced offer now in order to give their board and management time to consider it and enter into discussions with us prior to Midwest's May 23, 2007, annual meeting.
What I do think is happening is that Midwest was planning to sell BUT, they were planning to sell to another airline . . . not AAI. That is why I think that there is this posturing that "No we do not want to sell out" . . . . (to you AAI) but if someone else came along with an offer, then MEH would entertain it.
We'll see what happens . . . I'm sure that the suitor that was planning to bid on MEH prior to AAI is now a little ticked off because the price is now $100 million more . . . and only a year ago, they could have bought MEH for about $100 million total.
#4
Midwest would be doing their shareholders harm should they not agree. Without the buyout attemp of AAI (AirTran) I do not think MEH (Midwest) stock would have ever seen $15.00 again from it's pre-buyout talks.
What I do think is happening is that Midwest was planning to sell BUT, they were planning to sell to another airline . . . not AAI. That is why I think that there is this posturing that "No we do not want to sell out" . . . . (to you AAI) but if someone else came along with an offer, then MEH would entertain it.
We'll see what happens . . . I'm sure that the suitor that was planning to bid on MEH prior to AAI is now a little ticked off because the price is now $100 million more . . . and only a year ago, they could have bought MEH for about $100 million total.
What I do think is happening is that Midwest was planning to sell BUT, they were planning to sell to another airline . . . not AAI. That is why I think that there is this posturing that "No we do not want to sell out" . . . . (to you AAI) but if someone else came along with an offer, then MEH would entertain it.
We'll see what happens . . . I'm sure that the suitor that was planning to bid on MEH prior to AAI is now a little ticked off because the price is now $100 million more . . . and only a year ago, they could have bought MEH for about $100 million total.
it isn't as black and white as you make it out to be.
#6
I'd give it 75-80% odds it does happen. $389 million is MORE than Midwest is worth. Their stock was in the $9 range when AirTran announced their takeover bid. Now AirTran is offering them $9 cash and about $6 in AirTran stock for every share of Midwest.
I would take the deal.
I would take the deal.
#7
so would this be a bad time to apply for a ramp position w/ midwest? heh
i'm actually a ramper for usair right now, but all the politics and the airline suck really bad right now.. not to mention the pay. $7.50/hour isn't the greatest in the world. midwest i think starts at like $10.15 an hour here, so i was thinking about maybe going for an interview over there?
i'm actually a ramper for usair right now, but all the politics and the airline suck really bad right now.. not to mention the pay. $7.50/hour isn't the greatest in the world. midwest i think starts at like $10.15 an hour here, so i was thinking about maybe going for an interview over there?
#8
From http://washington.bizjournals.com/mi...2/daily37.html
Classified job advertisements being run by AirTran Holdings Inc. are an attempt to "frighten employees and confuse the public," Midwest Air Group Inc.'s top executive stated in a memo to employees of Midwest and Skyway Airlines.
The letter was released in a filing made Thursday with the U.S. Securities and Exchange Commission by Oak Creek-based Midwest Air Group, parent company of Midwest and Skyway. Orlando, Fla.-based AirTran Holdings (NYSE: AAI), parent company of AirTran Airways, is in the midst of a hostile takeover attempt of Midwest Air (AMEX: MEH).
"These ads give the impression that AirTran is actively engaged in the immediate hiring of employees in the Milwaukee area," wrote Timothy Hoeksema, Midwest's chairman, president and chief executive officer. "But the fact is, AirTran's Web site lists no current job openings in Milwaukee."
AirTran spokesman Kevin Healy said AirTran is seeking to hire six or seven customer service representatives that would be stationed at Milwaukee's General Mitchell International Airport. The planned hirings are mainly the result of AirTran's expanded summer service between Mitchell and Baltimore/Washington International Airport, Healy said.
#9
Mebbe not....
From http://washington.bizjournals.com/mi...2/daily37.html
Classified job advertisements being run by AirTran Holdings Inc. are an attempt to "frighten employees and confuse the public," Midwest Air Group Inc.'s top executive stated in a memo to employees of Midwest and Skyway Airlines.
The letter was released in a filing made Thursday with the U.S. Securities and Exchange Commission by Oak Creek-based Midwest Air Group, parent company of Midwest and Skyway. Orlando, Fla.-based AirTran Holdings (NYSE: AAI), parent company of AirTran Airways, is in the midst of a hostile takeover attempt of Midwest Air (AMEX: MEH).
"These ads give the impression that AirTran is actively engaged in the immediate hiring of employees in the Milwaukee area," wrote Timothy Hoeksema, Midwest's chairman, president and chief executive officer. "But the fact is, AirTran's Web site lists no current job openings in Milwaukee."
AirTran spokesman Kevin Healy said AirTran is seeking to hire six or seven customer service representatives that would be stationed at Milwaukee's General Mitchell International Airport. The planned hirings are mainly the result of AirTran's expanded summer service between Mitchell and Baltimore/Washington International Airport, Healy said.
From http://washington.bizjournals.com/mi...2/daily37.html
Classified job advertisements being run by AirTran Holdings Inc. are an attempt to "frighten employees and confuse the public," Midwest Air Group Inc.'s top executive stated in a memo to employees of Midwest and Skyway Airlines.
The letter was released in a filing made Thursday with the U.S. Securities and Exchange Commission by Oak Creek-based Midwest Air Group, parent company of Midwest and Skyway. Orlando, Fla.-based AirTran Holdings (NYSE: AAI), parent company of AirTran Airways, is in the midst of a hostile takeover attempt of Midwest Air (AMEX: MEH).
"These ads give the impression that AirTran is actively engaged in the immediate hiring of employees in the Milwaukee area," wrote Timothy Hoeksema, Midwest's chairman, president and chief executive officer. "But the fact is, AirTran's Web site lists no current job openings in Milwaukee."
AirTran spokesman Kevin Healy said AirTran is seeking to hire six or seven customer service representatives that would be stationed at Milwaukee's General Mitchell International Airport. The planned hirings are mainly the result of AirTran's expanded summer service between Mitchell and Baltimore/Washington International Airport, Healy said.
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