Here's why Midwest wouldn't sell to Airtran

[Flydaplane]

Midwest Airlines' recent sale to investment firm TPG Capital will result in hefty payouts of stock and cash to carrier executives, the Associated Press reported. Chairman Tim Hoeksema reportedly will receive more than $10 million in cash and stock while VPs Carole Skornicka and David Reeve are in line for $1.6 million each. CFO Curtis Sawyer and VP Scott Dickson will receive about $1 million each. Northwest Airlines is the largest shareholder in the TPG acquisition.

I bet the Midex union guys sure are happy they opposed the Airtran deal now. They played you boys bad! And they even tried to get concessions out of you for their own golden parachutes.

 

[CitationLover]

Midwest Airlines' recent sale to investment firm TPG Capital will result in hefty payouts of stock and cash to carrier executives, the Associated Press reported. Chairman Tim Hoeksema reportedly will receive more than $10 million in cash and stock while VPs Carole Skornicka and David Reeve are in line for $1.6 million each. CFO Curtis Sawyer and VP Scott Dickson will receive about $1 million each. Northwest Airlines is the largest shareholder in the TPG acquisition.

I bet the Midex union guys sure are happy they opposed the Airtran deal now. They played you boys bad! And they even tried to get concessions out of you for their own golden parachutes.

do you not understand anything with which you are typing? if air tran bought us they would have gotten air tran's money for their stock ($10) and air tran stock on top of that. every stockholder (not just the executives) is getting their midwest shares bought (air tran or tpg).

 

[Captainjerky]

Sellout

do you not understand anything with which you are typing? if air tran bought us they would have gotten air tran's money for their stock ($10) and air tran stock on top of that. every stockholder (not just the executives) is getting their midwest shares bought (air tran or tpg).

I think what Flydaplane was saying is that Uncle Timmy sold out all the Midwest employees. Instead of entertaining the Airtran offer, according to the Urinal Sentinel he approached Northwest a while back to ask about them buying into Midwest. Now Midwest employees get to spend the next couple years worrying what Northwest will do to them once TPG sells...
Just MY take on it, you understand, but it's hard to not see this as Northwest's backdoor purchase of an airline that's caused them problems for years. The concern is what happens to all those loyal and long term employees once Northwest gets their hands on the company.

 

[ultrarunner]

Actually, the TPG deal IS a better deal for the shareholders as it's "cash-in-hand" deal. The AAI offer was cash-stock deal. CASH is king, and in the TPG deal, the shareholder now has the flexibility to invest as s/he sees fit.

I'd have take 16 bucks cash any day for that stock, vs. the AAI offer.

Folks keep thinking that that deals like this need to put the employees first...and those folks don't understand how the system works. SHAREHOLDERS come first folks, that's the bottom line.

 

[MGT3]

How many DC-9s does NWA have versus Medex's 717s?

The good news is that DET and MSP arn't that far of a commute from MKE.

 

[ultrarunner]

How many DC-9s does NWA have versus Medex's 717s?

Hard to say as I'm not sure of NWA's retirement sched....but someone will chime in to correct me.

I think as of this past year, NWA has 150 or so DC 9's in service.

MidEx has 25 717's.

 

[CitationLover]

I think what Flydaplane was saying is that Uncle Timmy sold out all the Midwest employees. Instead of entertaining the Airtran offer, according to the Urinal Sentinel he approached Northwest a while back to ask about them buying into Midwest. Now Midwest employees get to spend the next couple years worrying what Northwest will do to them once TPG sells...
Just MY take on it, you understand, but it's hard to not see this as Northwest's backdoor purchase of an airline that's caused them problems for years. The concern is what happens to all those loyal and long term employees once Northwest gets their hands on the company.

i am sure the continental and america west people (whom nwa did this exact same thing to) are worrying about that stuff now.

they'd be worrying if it was air tran too on the buying end. we shall wait and see regarding NWA involvement. TPG's history has shown Tim has a short amount of time to make things looking better or he will be gone.

 

[CitationLover]

I'd have take 16 bucks cash any day for that stock, vs. the AAI offer.

Folks keep thinking that that deals like this need to put the employees first...and those folks don't understand how the system works. SHAREHOLDERS come first folks, that's the bottom line.

it was $17/share i believe in the end.

wisconsin state law requires STAKEHOLDERS (not shareholders but employees, etc.) to be considered in a takeover. this law was what was holding air tran up from simply buying shares on the open market as it contained some defense mechanisms a company could use.

 

[Britpilot]

i am sure the continental and america west people (whom nwa did this exact same thing to) are worrying about that stuff now.

.

Continental bought out of NWA as soon as they could. They called it "Independence Day" at CAL. Cost CAL a lot of cash but they wanted out of NWA's grasp as soon as possible.
Good luck.

 

[CitationLover]

Continental bought out of NWA as soon as they could. They called it "Independence Day" at CAL. Cost CAL a lot of cash but they wanted out of NWA's grasp as soon as possible.
Good luck.

my understanding was they both own 15% of each other. is this not the case anymore?