Why the Midwest/AAI deal is not dead

[Critter717]

Michael Boyd on rejection of bid

http://biz.yahoo.com/ap/070413/midwest_airtran.html?.v=10


On Thursday, shareholder Market Street Securities filed a class action lawsuit against Midwest and its board of directors, accusing them of not acting in good faith by rejecting the offers. Skornicka said these types of suits are expected in a hostile takeover situation and said there would probably be more.
Midwest's rejection of the bid was not surprising but it was unfortunate because the combination could provide more low-fare service to a market like Milwaukee, said Michael Boyd, president of The Boyd Group, an aviation consulting firm in Evergreen, Colo.
Smaller airlines with smaller planes do serve a niche, he said, but it's not a market that a company should build a future on.
"There's a place for those kind of airplanes, no question, but it's a declining place," Boyd said.


The members of MEH's board have an obligation to the institutional investors as well as individual investors. Everybody wants a return on investment, but the large firms that have alot of money in MEH have the ability to apply pressure and be heard.

 

[crashpad]

Oh, it's dead alright. What I will never understand is why the pilot group wasn't chomping at the bit to merge from the beginning. Theier stock price was around $6/share before the takeover attempt, then it went to over $14.
Here's a sign of things to come: Watch MEH stock at the opening bell on Monday. My guess is it will start a steady decline to around $5. The BOD at MEH has agenda to retain power, not money.

 

[tubelcane]

You really think it will go to 5? Why didnt it tank late Friday then?

 

[mnboyev]

only Warren Buffet knows..... grin

 

[CitationLover]

Oh, it's dead alright. What I will never understand is why the pilot group wasn't chomping at the bit to merge from the beginning. Theier stock price was around $6/share before the takeover attempt, then it went to over $14.
Here's a sign of things to come: Watch MEH stock at the opening bell on Monday. My guess is it will start a steady decline to around $5. The BOD at MEH has agenda to retain power, not money.

really?!?! let me ask you, why didn't it do that on friday since the announcement was first thing in the morning?

their offering $70 million in cash plus a half equity stake for this company. obviously goldman sachs feels it is worth more, and hence its recommendation. but go ahead and believe in your conspiracy theory while you are chemically altering the atmosphere working for our government while they hide the aliens who killed kennedy.

 

[donkeykong]

Oh, it's dead alright. What I will never understand is why the pilot group wasn't chomping at the bit to merge from the beginning. Theier stock price was around $6/share before the takeover attempt, then it went to over $14.
Here's a sign of things to come: Watch MEH stock at the opening bell on Monday. My guess is it will start a steady decline to around $5. The BOD at MEH has agenda to retain power, not money.

More sour grapes from Crash. Tim and the boys got the best of you. No way on $5. Good thing you're not a broker. I'll assume you're left seat at F9 now with weekends off.

 

[Lear70]

It won't tank on Monday.

It will tank IF and WHEN AirTran announces they are withdrawing their takeover attempt.

Until then, a lot of people (the large institutional shareholders) still believe it's going to happen and are holding on to the stock, which is keeping the price fairly level.