57% of Midwest shareholders back Airtran

[General Lee]

By Paritosh Bansal
NEW YORK, May 17 (Reuters) - AirTran Holdings Inc. (AAI.N: Quote, Profile , Research) is expected to announce on Thursday that holders of nearly 57 percent of Midwest Air Group Inc.(MEH.A: Quote, Profile , Research) shares have backed its hostile bid for the airline, a source close to the matter said.
AirTran, the 10th largest U.S. airline by revenue, has made a hostile bid worth about $389 million for rival Midwest. Midwest's management has called the offer inadequate and encouraged shareholders to reject it.
AirTran is expected to extend the deadline for its tender offer to June 8, the source said. Its tender offer expired on Thursday and the final figure was still being counted, this person said. The airline has until Thursday morning to extend the offer.


AirTran's bid, which has been raised twice, consists of $9 in cash and 0.5842 shares of AirTran common stock for each Midwest share.

Orlando, Florida-based AirTran, parent of low-cost carrier AirTran Airways, made its initial offer worth $290 million in October and publicized it in December. It raised the offer to $345 million in January and then to $389 million in April.
Milwaukee-based Midwest has asked investors to pass on the bid and has offered a stand-alone expansion plan that calls for additional routes and fleet replacement.

© Reuters 2007. All Rights Reserved.


Should be interesting there.


Bye Bye--General Lee

 

[Kharma Police]

Maybe the company could put this kind of effort and determination into getting a contract for the pilots!

 

[ACL65PILOT]

I think that this may go through. MKE loves MidEx, but money is a lot louder than your customer base. AirTran needs to find a new base and fast. They are smart in knowing that they need to reduce their exposure in ATL. If this does not go through, then I am confident that they will up the offer again.

 

[Eagle757shark]

Now that Midwest has set its shareholder's meeting, AirTran by law will have access to the address' of all the shareholders. This will allow them to mail proxies directly to them for the upcoming shareholder meeting in June to elect the three members they are putting up for the board of directors. Having access to the address' will allow AirTran to further mail their business plan directly to the shareholders. The next 30 to 60 days will be interesting.

 

[FlyAirtran]

This should send the message to Timothy that his shareholders want him to negotiate and maybe he should open up his books for Airtran so we can estimate the actual value of the company. Very interesting!

 

[XRMEFLYER]

Can someone please edumacate me on how having three board members is going to affect or change the votes of the others who will still outnumber them and have voted unamimoulsly(I think) until now to shoot this thing down. Also, Is 57% not already enough to get this thing done? If not, how much do they need to take over?

 

[gearup5]

Is it finally time for the Midwest pilots to quit walking the fence and support this deal? I think we need the employee groups of Midwest to go along. Maybe it will also pull some of the heat off of us in the MKE press.
More opportunity, more growth, fewer RJ's. Sounds like a win for all.

p.s. I bet we could work something out with the cookies.

 

[Moustache]

Can someone please edumacate me on how having three board members is going to affect or change the votes of the others who will still outnumber them and have voted unamimoulsly(I think) until now to shoot this thing down. Also, Is 57% not already enough to get this thing done? If not, how much do they need to take over?

3 members this year, three members next election, ect, ect=
all airtran members in time

 

[ultrarunner]

Offer already extended till June 8. I would expect this deal to go through.

 

[The Victors]

Is it finally time for the Midwest pilots to quit walking the fence and support this deal? I think we need the employee groups of Midwest to go along. Maybe it will also pull some of the heat off of us in the MKE press.
More opportunity, more growth, fewer RJ's. Sounds like a win for all.

Try and name 1 airline merger in history that was ever a "win for all"

 

[The Victors]

Maybe the company could put this kind of effort and determination into getting a contract for the pilots!

Totally agree. Guess they are expecting the pilots to finance this take over instead of industry standard wages.

 

[gt1900]

Xrmflyer...... BAsically, the 9 members of the board are all Midex people, if AAI gets 3 on the board then they will be able to go into board meetings and argue the other side, hopefully changing the minds of a few of the existing board members.. It might not do any good at all, since the board will still consist of 6 pro midex board members and 3 pro AAI members... However, Moustache is right.. 3 this year and 3 next year.. Either way, I belive Timmey and Carol are gonna try and pull out all the stops... This deal will eventually go through, it just might not happen until the 2008 meeting... God help us all....

 

[Eagle757shark]

As Octavian noted in their SEC filing, AirTran was able to get 57% of the shares tendered. All these shares without having the address' of the shareholders. Now that Midwest has set a date for their shareholders meeting, they will have to provide AirTran with a shareholders list with their address by law. AirTran will be able to communicate directly with each shareholder in an attempt to get many more shares before the June 8th date and the shareholder meeting in mid June.

 

[gearup5]

Try and name 1 airline merger in history that was ever a "win for all"

Well a win for almost all

I was being a bit sarcastic about the the win for all. I just think this makes sense for the long term survivability of both airlines.
Also, lets admit that the fewer Rj's that are out flying around, the better off we all are.

 

[Max Powers]

Fewer RJs? AAi folks have been quoted with saying they may use skywest, deploying 70 seaters out in Kansas city.

 

[Flydaplane]

I haven't heard any AAI comments about using RJ's again (ohter than critcizing MEH for planning on using them for growth). MCI could support more growth if MEH had the planes, AAI could provide these.

So does anyone know how this actually works?
Does AAI just need a majority of shares or a huge majority or what?
If Timmy uses the poison pill and dilutes the market, those shares will still get bought up and could be tendered as well couldn't they?

For the record, I'd say the pilot group at MEH is pretty evenly split with about 40% of the old timers favoring MEH and 60% favoring the merger (based on my conversations, nothing scientific). The MEC is opposed to the merger of course but they'd all lose their positions so that's to be expected.

 

[gt1900]

AAI has said that 50 seat RJ's dont work, 70 seat RJ's are basically a break even airplane. I have heard AAI may be interested in 70 or 90 seat RJ's, but want nothing to do with 50 seaters............As far as stock tendered, remeber, the are tendered, and not owned by AAI.. However, one could expect the owners of the stock (Ocatavia for instance) to vote any way that AAI would want them too.. Hell, AAI could have 100% of the stock and I don't believe the board would have to sell.. AAI would just use the voting power of the stockholders who tendered the stock to replace the board of directors.. Eventually though, with enough share holders pressuring the board, you would expect Midex to give in the the takeover... This is why AAI is nominating 3 members to the Midex board this year (there is 3 open slots this year)... When the3 board members from AAI get nominated, they will then try and convince the 6 other board members to support the takeover.. If they fail to do that, then you can bet AAI will be nominating another 3 board members in 2008... And I truly believe AAI would be completly satisfied hanging around for that long... Lets hope it doesn't get that far...

 

[XRMEFLYER]

AAI has said that 50 seat RJ's dont work, 70 seat RJ's are basically a break even airplane. I have heard AAI may be interested in 70 or 90 seat RJ's, but want nothing to do with 50 seaters............As far as stock tendered, remeber, the are tendered, and not owned by AAI.. However, one could expect the owners of the stock (Ocatavia for instance) to vote any way that AAI would want them too.. Hell, AAI could have 100% of the stock and I don't believe the board would have to sell.. AAI would just use the voting power of the stockholders who tendered the stock to replace the board of directors.. Eventually though, with enough share holders pressuring the board, you would expect Midex to give in the the takeover... This is why AAI is nominating 3 members to the Midex board this year (there is 3 open slots this year)... When the3 board members from AAI get nominated, they will then try and convince the 6 other board members to support the takeover.. If they fail to do that, then you can bet AAI will be nominating another 3 board members in 2008... And I truly believe AAI would be completly satisfied hanging around for that long... Lets hope it doesn't get that far...

Actually that sounds like a better time frame for me since I should be able to upgrade by then!

 

[Murphy]

Actually that sounds like a better time frame for me since I should be able to upgrade by then!

Remember...the Captains on the property don't want us FOs talking about upgrade. I'm sure the same 717s Captains that have been sitting reserve/buildup for two years will be happy for me to upgrade (shhh!) so I can take their place and sit reserve. And I'm not going to whine when I sit on the couch for three straight days and they ask me to fly as an FO because Coach lays on the guilt trip that pax are getting stranded.

I need to develop a new mindset. I love being an AirTran first officer. It's what I've always aspired to be in life. Give me a friggin break!

 

[Lear70]

*snicker*

Don't worry Murph... Coach reads this forum, as do several of the HR peeps.

How do I know? I got my butt chewed last week for a post on here I made just as a flippant response to someone giving me grief.

Some people take this forum WAY too seriously...

 

[FlyFastLiveSlow]

Some people take this forum WAY too seriously...

So are you the pot or the kettle??

 

[crashpad]

I got my butt chewed last week for a post on here I made just as a flippant response to someone giving me grief...

Lear, you are an esteemed member of this board and an aviator above repproach from any HR dork or management puke. Next time someone wants to "chew you out", remind them of your first ammendment right to free speech, and how harassment and discrimination are easily proven in court when your rights are violated. That should shut those little pud-whackering cowards permanently. If not, you can file and plan on an early retirement much earlier than the rest of us.....and with a ton more cash in pocket.

 

[Lear70]

Lear, you are an esteemed member of this board and an aviator above repproach from any HR dork or management puke. Next time someone wants to "chew you out", remind them of your first ammendment right to free speech, and how harassment and discrimination are easily proven in court when your rights are violated. That should shut those little pud-whackering cowards permanently. If not, you can file and plan on an early retirement much earlier than the rest of us.....and with a ton more cash in pocket.

Thanks, Crash... It kinda made me mad, especially after as much as I talk positively about this company on this forum, how much I enjoy the crews, the trips, the airplane, etc, etc., then one comment they don't like and it gets printed, disseminated, and I get chastised...?

Kinda makes me feel not so warm and fuzzy about the company which is probably the opposite affect of what they had in mind.

Like I've said before: this company could be the next Southwest, but they've got some work to do to get there.

 

[SkiFishFly]

Thanks, Crash... It kinda made me mad, especially after as much as I talk positively about this company on this forum, how much I enjoy the crews, the trips, the airplane, etc, etc., then one comment they don't like and it gets printed, disseminated, and I get chastised...?

Kinda makes me feel not so warm and fuzzy about the company which is probably the opposite affect of what they had in mind.

Like I've said before: this company could be the next Southwest, but they've got some work to do to get there.

Lear. I am rather ticked to hear about this. Crash is absolutely correct about your right to express yourself here or on similar forums. Anyone who pays any attention to your posts on here knows you are an AAI supporter who wants to see the company do well.

I too think this company has the potential to be the next big success story. I think we need to stop being sooo cheap on some things. We also need to focus a little on cleanliness - especially of our airplanes.

 

[Lear70]

Lear. I am rather ticked to hear about this. Crash is absolutely correct about your right to express yourself here or on similar forums. Anyone who pays any attention to your posts on here knows you are an AAI supporter who wants to see the company do well.

I too think this company has the potential to be the next big success story. I think we need to stop being sooo cheap on some things. We also need to focus a little on cleanliness - especially of our airplanes.

Thanks, and yeah, you're absolutely right.

Hard to greet people with a smile and say, "Grab a seat in the trash pile, and hope you enjoy your flight!"

Something needs to be done about it. The F/A's aren't doing it, the gate agents aren't doing it, and that only leaves us up front and there's no time on a 20 minute turn.