AirTran's Midwest Merger Presentation

[pilotmyf]

I can't imagine they are excited about anything right now...oh wait, they're getting two more Do-jets. Never mind.

Don't be a dick

 

[EX_CV580FR8Dawg]

Midwest hires Goldman Sachs as adviser

The parent company of Midwest Airlines said today it has hired an investment banking firm to provide strategic advice, one week after it was disclosed that the company had rejected an unwanted takeover offer from AirTran Airways.

Midwest Air Group Inc. (MEH) announced that it has hired Goldman, Sachs & Co. (GS) as a financial adviser. The announcement came at 3:30 p.m., after trading closed. Midwest stock closed at $11.07 a share, down 4 cents.

Midwest Air will "be working with its financial adviser to further develop the company's strategy to grow its business and maximize shareholder value," said a statement from the Oak Creek-based company. The statement provided no other information on the decision to hire Goldman, Sachs, and a Midwest spokeswoman couldn't be reached immediately for comment.

However, the hiring of an investment banking firm like Goldman, Sachs is often done by companies that are evaluating business strategies, as well as considering acquisition offers.

"I think that Midwest might have realized there was a little more value it could unlock as a company. And they are just exploring it," said Chris Armbruster, a research analyst for Al Frank Asset Management Inc., which owns a 1.3% stake in Midwest.

By hiring Goldman Sachs, Midwest can better determine its value to a company that might want to acquire it, Armbruster said.

AirTran (AAI) disclosed last week that Midwest had rejected its $290 million offer. AirTran made the announcement in hopes of bringing shareholder pressure to bear on Midwest's board of directors to reconsider the offer.

That offer was at $11.25 a share, which some analysts have said is too low. AirTran Chairman and CEO Joseph Leonard said AirTran would be willing to pay more if it could review Midwest's proprietary financial data, and determine whether the company had additional value beyond what was reflected in the initial offer.

Midwest's ongoing strategic growth plan, which includes a new regional jet service that launches in April, has a "significantly higher" value than the AirTran offer, Timothy Hoeksema, chairman, chief executive officer and president, said this week.

That plan forecasts 10% annual passenger capacity growth - and even higher profit growth - over the next three years. It was formerly detailed on Thursday, but drew little reaction from the stock market.

Hoeksema also told reporters that the company's board would have a duty to shareholders to review any "credible" offer.

Hey appendix...you also forgot to add that they are working with GS to further their growth strategy. Funny how you leave key points out of your statement? How's the Tranny Koolaid tastin'?

 

[RIDETHELIGHTING]

That dude looks like he is almost dead holding that sign in your avart. Maybe he needs a cookie?

 

[FlyWolf]

That dude looks like he is almost dead holding that sign in your avart. Maybe he needs a cookie?

lol..