Could AirTran get Midwest After all?

[Eagle757shark]

Midwest Air says sale delayed
Regulators want more information

Associated Press
Published on: 10/05/07
MILWAUKEE — The sale of Midwest Air Group Inc. to a private equity firm has been delayed, the airline announced, because antitrust regulators want more information on the deal.
The Milwaukee-based operator of Midwest Airlines said the U.S. Department of Justice has issued a second request for information on the sale to TPG Capital. The deal is under scrutiny because Northwest Airlines Corp. is a passive investor.
The second request for information delays completion of the sale, valued at about $450 million in cash, for at least 30 days, Midwest said in a news release late Thursday.
AirTran Airways had made a failed attempt to acquire Midwest, which rebuffed the Orland-based airline in favor of TPG. AirTran had hoped to make a deal as a way to diversify its operations and growth away from its Atlanta hub, which accounts for two-thirds of its flights.
Midwest said it will still go ahead with its special shareholders meeting to approve the sale on Oct. 30 in Milwaukee.
Midwest agreed in August to be bought out by TPG for $17 a share in cash. It has about 26.6 million shares outstanding.
The TPG deal followed months of escalating offers from rival AirTran Holdings Inc., the Orlando, Fla.-based operator of AirTran Airways.
According to regulatory filings, Northwest is committed to paying nearly $213.3 million, or 47 percent of the deal, while TPG will pay the remaining 53 percent, or $238.1 million.
Northwest, which emerged from bankruptcy in May, has said it would not participate in Midwest's management.
Shares of Midwest fell 20 cents, or 1.23 percent, to $16 early Friday, while shares of Northwest were up 33 cents, or 1.71 percent, to $19.63.

 

[Eagle757shark]

So if the Department of Justice decides to block this, will AirTran come back? It will be very interesting.

 

[Citrusflyer]

So if the Department of Justice decides to block this, will AirTran come back? It will be very interesting.

DOJ wont block it, too many politicos with too much needed $$ for re-election.

Airtran will buy up some of the pieces when NWA starts selling them off, about two years from now.

Until then, Plan C for Citrus.......

 

[CitationLover]

Airtran will buy up some of the pieces when NWA starts selling them off, about two years from now.

did miss cleo tell you that?

 

[NuGuy]

Heyas,

Yup. The DOJ "asking" for more information is not uncommon, and would be expected for this.

The AP has it wrong in this case. They "deal" couldn't go through until the shareholders voted it in, and so it really isn't delayed any. The Reuters article was more accurate.

Nu

 

[ultrarunner]

The deal is under scrutiny because Northwest Airlines Corp. is a passive investor....Northwest is committed to paying nearly $213.3 million, or 47 percent of the deal...Northwest, which emerged from bankruptcy in May, has said it would not participate in Midwest's management.

What a crock of $hit....

NO company puts up nearly 50 percent of the greenbacks and just sits back as a "passive" investor.

And there are plenty enough smart people at NWA and TPG that know the DOJ knows that!

NWA's statement regarding their "non-particiapation" in MEH management isn't worth the paper it's printed on, and is nothing but lip-service to get the deal through.

If the DOJ comes back and actually prohibits NWA's participation, citing anti-trust issues, then I would see NWA doing something different with their 200+ million!

 

[ultrarunner]

So if the Department of Justice decides to block this, will AirTran come back? It will be very interesting.

Hard to say. But at least everyone knows what MEH's price is!

And if the DOJ blocks the deal, MEH stock will take a pretty good dump and that could get the ball rolling again...

 

[IdRtherBsailing]

Airtran will buy up some of the pieces when NWA starts selling them off, about two years from now.

The heck with all that....since you have the crystal ball out, who's going to win the Superbowl this year?

 

[CitationLover]

The heck with all that....since you have the crystal ball out, who's going to win the Superbowl this year?

it's obvious. notre dame! they have a perfect record.

da bears! winging it with crappy qb's!

 

[Citrusflyer]

The heck with all that....since you have the crystal ball out, who's going to win the Superbowl this year?

If you ever saw the sticker on my flight bad you'd know who's camp I'm in....but now that Travis Henry thought that pot was a better deal than millions in $$ who knows....I'll have to consult the crystal ball again and let you know.