AirTran ups offer to $389

[RIDETHELIGHTING]

Well let the next round begin.

 

[Dizel8]

The higher cash-and-stock proposal, valued at $15 a share, is the latest attempt by AirTran, of Orlando, Fla., to persuade Midwest to negotiate a deal that would unite two low-cost carriers with flight networks and aircraft types seen as complementary by some analysts and investors.

 

[FlyAirtran]

[html]

[/html]I think this will just about do it.


-----------------
AirTran Holdings to up bid to takeover Midwest Airlines

Beth Kassab | Sentinel Staff Writer
Posted April 1, 2007, 10:34 PM EDT

An AirTran Holdings official said late Sunday night that the Orlando-based carrier would again up its bid in an increasingly hostile attempt to takeover Midwest Airlines.

AirTran will announce Monday morning that it's offer will rise to $15 per share or $389 million for the airline based in Milwaukee.

The offer has increased substantially since it first became public in December when AirTran executives revealed that they believed Midwest leaders were not giving proper consideration to their original offer valued at $290 million or $11.25 per share. The offer was sweetened in January to $345 million.

The latest offer is being made through Galena Acquisition Corp, a wholly owned subsidiary of AirTran. The new deadline for the tender has been set for May 16, about a week before Midwest's scheduled annual shareholder meeting during which AirTran will try to rally shareholders to elect a new slate to the board of directors.

"If we are not able to enter into discussions with Midwest prior to the annual meeting, Midwest shareholders will have the opportunity, at that time, to control their own destiny by determining whether the existing board of directors is really serving the best interests of shareholders," said AirTran Chief Executive Joe Leonard.

At the end of trading on Friday, Midwest shares closed up 24 cents at $13.51. AirTran shares closed up 7 cents at $10.27.

--------------

AirTran sweetens offer for Midwest Air

AirTran Holdings Inc. is again raising its purchase offer for Midwest Air Group Inc., boosting the value by more than 18% - and making it clear that the battle for Milwaukee's hometown airline is far from over.

AirTran will announce Monday that its offer is being increased to $9 in cash and 0.5842 share of AirTran stock for each share of Midwest Air, a source familiar with the situation told the Journal Sentinel.

Based on AirTran's closing price on Friday, the offer for Midwest Air is now $15 per share. That compares to $12.67 per share under the previous terms of $6.625 in cash, and 0.5884 share of AirTran stock. That offer price can change based on the daily closing price of AirTran stock.

AirTran's new offer is 11% higher than Midwest Air's Friday closing price of $13.51 per share. AirTran's closing price Friday was $10.27 per share.

The acquisition's total value would be around $388 million. AirTran's offer, which was to expire on April 11, will be extended to May 16.

The higher price indicates that AirTran's hostile takeover attempt is not going to go away, said Jay Sorensen, an aviation industry consultant and former Midwest marketing manager.

"They have been relentless," Sorensen said Sunday, after learning of the new offer from a reporter.

If AirTran increases its offer, Midwest Air's board will evaluate it and make a recommendation to shareholders, said Carol Skornicka, Midwest Air senior vice president of corporate affairs. She declined further comment because a formal offer had not yet been announced by AirTran.

AirTran spokesman Tad Hutcheson declined to comment.

 

[717capt]

[html]

[/html]I think this will just about do it.


Thats what a few said about the last offer of $345 million. We started this at $290 million mid December now three months later we upped it by $100 million. If we are willing to do that maybe we might go to $400 mill. or maybe $450 mill. Thats what I'd be thinking if I was Tim or the MEH BOD.

Personally I hope not. We can be spending the money on other opportunities.

 

[Eagle757shark]

I would definitely like to be a fly on the wall when the Midwest board meeting takes place to hear the response to all this. I don't know what the right price is, but watching AirTran up their offer again says a great deal for their desire to make this deal happen. I guess since it is 0900 in MKE at this time we shall soon hear the response from Midwest.

 

[EMB170Pilot]

for your sake I hope this deal goes through.

otherwise, your in trouble cause Mother D is coming after you!

MHO

 

[Kharma Police]

for your sake I hope this deal goes through.

otherwise, your in trouble cause Mother D is coming after you!

MHO

Actually, Republic/Chautauqua is coming after us with Embraers painted in Delta colors.

 

[minrest]

I heard from a reliable source that Airtran has upped the offer to include the proof-of-purchase from a Wendy's extra value meal - SUPERSIZED - . It sounds like Airtran is serious now!

 

[pit717]

hey you rj pilot....mother d has been after us for 11 years...workin real good huh

 

[Wesb737fo]

for your sake I hope this deal goes through.

otherwise, your in trouble cause Mother D is coming after you!

MHO

Yaawwwwnnnnn......wake me up when something happens.....

 

[Eagle757shark]

for your sake I hope this deal goes through.

otherwise, your in trouble cause Mother D is coming after you!

MHO

OOOOOH! Back in the beginning of 2002, Mother D had the best financial books of any Airline. They ended up in Ch.11! American Airlines and Continental Airlines, said they were going to focus on what they do best and catered to their clientele. Both American and Continental have done well and have been profitable. Delta and United tried to create airlines within a airline, which has never worked, and ended up in bankruptcy trying to compete with AirTran, Jetblue, and Frontier. If mother D would focus on running a good product that is profitable, there is plenty of room for AirTran and Delta to coexit in Atlanta profitably. It has been said many times in this industry recently that Jetblue and AirTran schedule Delta jets. When Delta emerges from Ch.11, they need to tend to their business and we will all be just fine. I know people in middle management at mother D and they are always chatting about how they compare with AirTran. I can tell you that at AirTran that is not the case. If Delta would just use rational pricing of their product to be profitable, Delta and AirTran would have a good rivalry, but one that is profitable for both.

 

[~~~^~~~]

I would like to see the numbers on the passengers who take AAI to connect to DL's international operations.

 

[FlyWolf]

Didn't we beat (Delta/ airTran) and (NWA/ Midwest) to death yet?

Delta and NWA are in BK
Midwest and Airtran aren't, enough said

 

[Citrus531]

I would like to see the numbers on the passengers who take AAI to connect to DL's international operations.

Not sure of the number but we did have Pete Rose(no kidding) flying on us from LAS-ATL the other day with a connection on DL in ATL to CVG....and he was mad we didn't have an interline bag agreement to transfer his 4 bags to the big D....lol

Of all places...LAS then again I guess MLI or SAV wouldn't make much sense...maybe he was betting on if Midwest will take this next offer!

 

[wmuflyguy]

Not sure of the number but we did have Pete Rose(no kidding) flying on us from LAS-ATL the other day with a connection on DL in ATL to CVG....and he was mad we didn't have an interline bag agreement to transfer his 4 bags to the big D....lol

Of all places...LAS then again I guess MLI or SAV wouldn't make much sense...maybe he was betting on if Midwest will take this next offer!

I was DH'ing on the same flight to CVG as Pete Rose. He looked kinda pissed off, must have lost some money in LAS.