MarineGrunt
Will kill for peace.
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http://www.jsonline.com/story/index.aspx?id=636572
Midwest pushed again on talks
Biggest stockholder in airline urges negotiations with AirTran
By TOM DAYKIN
[email protected]
Posted: July 23, 2007
Midwest Air Group Inc.'s largest shareholder is again pressuring the company board to authorize talks with AirTran Holdings Inc. about a sale of the Oak Creek airline, according to a filing made Monday with the Securities and Exchange Commission.
The filing by Octavian Advisors, a New York hedge fund operator that owns 7.5% of Midwest Air stock, includes two letters written recently to Timothy Hoeksema, Midwest Air chairman and chief executive officer.
A July 11 letter reiterates Octavian's interest in seeing sales negotiations begin. A July 18 letter refers to the presentation to the Midwest Air board last week by Joe Leonard, AirTran chairman and CEO. Leonard's presentation came after Midwest Air shareholders ousted three directors from the nine-member board and replaced them with three AirTran-nominated directors.
Richard Hurowitz, Octavian CEO, says in the July 18 letter that Octavian executives were "surprised and somewhat disturbed" to see statements in the press from Carol Skornicka, Midwest Air senior vice president of corporate affairs. Skornicka was quoted as saying that "nothing's changed as far as our board is concerned," after Leonard's presentation.
Skornicka's comments "were contradicted by commentary by AirTran indicating that the board asked 'thoughtful questions' and was 'interested' in the proposal," Hurowitz writes.
"Given these conflicting accounts of the meeting, we are concerned that there is a disconnect between the goals of Midwest's board and management," the letter says.
Hurowitz calls for the board to speak directly with shareholders about the meeting "without any spin from management."
Skornicka said Monday that Octavian's interest is understandable, given its large stake in Midwest Air. But, she said, Midwest Air would have no additional comment on Octavian's filing or on Leonard's presentation.
"The fact remains that there have been no new developments," Skornicka said.
Octavian and other hedge funds bought stakes in Midwest Air after AirTran's offer was disclosed in December.
Midwest Air stock closed at $9.08 a share on Dec. 12, the day before AirTran announced its interest in the company.
The current value of AirTran's cash-and-stock offer is $15 a share, based on AirTran's closing price Monday of $10.28, down 2 cents. That is a 4.2% premium over Midwest Air's closing price of $14.40, up 36 cents.
AirTran's hostile tender offer, which has drawn pledges for nearly 60% of Midwest Air stock, expires Aug. 10.
Midwest pushed again on talks
Biggest stockholder in airline urges negotiations with AirTran
By TOM DAYKIN
[email protected]
Posted: July 23, 2007
Midwest Air Group Inc.'s largest shareholder is again pressuring the company board to authorize talks with AirTran Holdings Inc. about a sale of the Oak Creek airline, according to a filing made Monday with the Securities and Exchange Commission.
The filing by Octavian Advisors, a New York hedge fund operator that owns 7.5% of Midwest Air stock, includes two letters written recently to Timothy Hoeksema, Midwest Air chairman and chief executive officer.
A July 11 letter reiterates Octavian's interest in seeing sales negotiations begin. A July 18 letter refers to the presentation to the Midwest Air board last week by Joe Leonard, AirTran chairman and CEO. Leonard's presentation came after Midwest Air shareholders ousted three directors from the nine-member board and replaced them with three AirTran-nominated directors.
Richard Hurowitz, Octavian CEO, says in the July 18 letter that Octavian executives were "surprised and somewhat disturbed" to see statements in the press from Carol Skornicka, Midwest Air senior vice president of corporate affairs. Skornicka was quoted as saying that "nothing's changed as far as our board is concerned," after Leonard's presentation.
Skornicka's comments "were contradicted by commentary by AirTran indicating that the board asked 'thoughtful questions' and was 'interested' in the proposal," Hurowitz writes.
"Given these conflicting accounts of the meeting, we are concerned that there is a disconnect between the goals of Midwest's board and management," the letter says.
Hurowitz calls for the board to speak directly with shareholders about the meeting "without any spin from management."
Skornicka said Monday that Octavian's interest is understandable, given its large stake in Midwest Air. But, she said, Midwest Air would have no additional comment on Octavian's filing or on Leonard's presentation.
"The fact remains that there have been no new developments," Skornicka said.
Octavian and other hedge funds bought stakes in Midwest Air after AirTran's offer was disclosed in December.
Midwest Air stock closed at $9.08 a share on Dec. 12, the day before AirTran announced its interest in the company.
The current value of AirTran's cash-and-stock offer is $15 a share, based on AirTran's closing price Monday of $10.28, down 2 cents. That is a 4.2% premium over Midwest Air's closing price of $14.40, up 36 cents.
AirTran's hostile tender offer, which has drawn pledges for nearly 60% of Midwest Air stock, expires Aug. 10.
