Midwest tries to thwart Airtran at Board Meeting

[Lear70]

Midwest sets date for board showdown

By DAVE HIRSCHMAN
The Atlanta Journal-Constitution
Published on: 03/30/07

Midwest Airlines and frustrated suitor Airtran Airways agree on this much: May 23 is a great date for an annual meeting.


Midwest, the target of a $345 million hostile takeover bid from AirTran, announced Friday it will hold its annual meeting in Milwaukee on the same date and at the same time AirTran meets in Williamsburg, Va.


"It's quite peculiar that they chose exactly the same date and time we did," said Richard Magurno, AirTran's general counsel.


The lone item on Midwest's agenda is electing three directors to Midwest's 12-member board. AirTran has nominated its own slate of candidates and hopes institutional investors vote for them and pressure Midwest to agree to a buyout.


AirTran is offering $345 million, or $13.25 a share, for the Milwaukee-based carrier that, like AirTran, flies Boeing 717s. An acquisition would allow AirTran to start a hub near Chicago where its planes could reach both coasts.


Orlando-based AirTran's flight operations are heavily concentrated in Atlanta.
Midwest has rebuffed AirTran several times since the merger efforts became public in October and says it can grow faster and more profitably on its own.
Carol Skornicka, Midwest's general counsel, said the airline chose the May date "because it gives our shareholders time to get all the information they need."


AirTran's Magurno said the carrier is likely to send a "silent observer" but won't make a formal presentation at the Midwest meeting or sponsor any theatrics. Proxy votes are counted in advance of the meeting, and the outcome is likely to be determined long before the meeting is actually held.


"There won't be any drama," Magurno said. "We're confident that, by the time of their meeting, candidates we're supporting will have won the election."

Pretty ballsy statement, all things considered.


Pretty chickensh*t move, however, to simply try to hold a board meeting at a time and date where your unwelcome hostile takeover company is holding theirs, just to try to avoid them showing up.

 

[Eagle757shark]

NO, just a tactic that anyone would have employed given the current circumstances. They don't want to be bought at the current offer and will do anything to keep AirTran management away from their shareholders. Now, it doesn't mean AirTran can't change their meeting date and now be at Midwest' board meeting. Bottom line AirTran most likely will have to up their offer to get this deal done. With only 7% of the shares being tendered, most shareholders know this and are holding out for more. If AirTran withdraws the offer, the Midwest stock will probable drop. I believe the shareholders are willing to take that risk at this point. Just the fact that AirTran keeps extending may be an indication to the shareholders that if we wait they will eventually raise the offer. The ball is definitely in AirTran's court. What will they do next?

 

[Kharma Police]

NO, just a tactic that anyone would have employed given the current circumstances. They don't want to be bought at the current offer and will do anything to keep AirTran management away from their shareholders. Now, it doesn't mean AirTran can't change their meeting date and now be at Midwest' board meeting. Bottom line AirTran most likely will have to up their offer to get this deal done. With only 7% of the shares being tendered, most shareholders know this and are holding out for more. If AirTran withdraws the offer, the Midwest stock will probable drop. I believe the shareholders are willing to take that risk at this point. Just the fact that AirTran keeps extending may be an indication to the shareholders that if we wait they will eventually raise the offer. The ball is definitely in AirTran's court. What will they do next?

I hope AirTran walks away, best of luck to Midwest.

 

[Ty Webb]

I hope so, too. Let MEH try to hack it on their own, then come back and pick up the pieces on the courthouse steps. Obviously, "Scornin' Carol" sees the writing on the wall- she's already announced her departure from MEH.

As for the MEH pilots (who made a formal statement in the press opposing the merger) well, I guess they'll get to reap the benefit of that particular gem of wisdom . . . . .

.

 

[Lear70]

As for the MEH pilots (who made a formal statement in the press opposing the merger) well, I guess they'll get to reap the benefit of that particular gem of wisdom . . . . .

*snicker*



Incidentally, with the increased offer price, it's obvious we're not going to walk away unless forced to...

Sadly enough.

 

[Flydaplane]

Yeah, I think its time to replace our MEC, they're so worried about losing their power they'll do anything. They think this merger is dead and are talking about building up a fund for other possible (ALPA vs ALPA) mergers in the future? If they think they'll get support for a merger assessment fund for other future mergers they're smokin crack!
By the way, I sold at $12...darn!

 

[Eagle757shark]

Yeah, I think its time to replace our MEC, they're so worried about losing their power they'll do anything. They think this merger is dead and are talking about building up a fund for other possible (ALPA vs ALPA) mergers in the future? If they think they'll get support for a merger assessment fund for other future mergers they're smokin crack!
By the way, I sold at $12...darn!

Well I guess AirTran is not walking away and this deal is not dead. AirTran just raised the offer to $389 million dollars. The Midwest MEC probable should have stayed neutral. There is a right price and AirTran may be getting closer to Midwest just opening up. So if AirTran hits the right price, what does the Midwest MEC say then? HINT folks, AirTran ain't going away! I believe these changes in the offer tend to be evidence of that.

 

[FlyAirtran]

We sure are giving their stock a boost its up $1.15 this morning!

 

[The Victors]

almost 400 million for that thriving MKE hub and a few slots and a/c. sweet. btw, what is that pay raise leonard is promising you guys? oh ya, zero. again sweet.

 

[Yuppyguppy]

so much for yall raises and a contract that's been expired for over 2 years...typical of your group

 

[pit717]

how do you spell bite me.......oh yah........victor and guppy...your stupid people..plain and simple

 

[PanPan]

so much for yall raises and a contract that's been expired for over 2 years...typical of your group

Yuppyguppy, I am very interested in this comment. Please explain to me how this increase will prevent a raise or put an end to the contract negotiations. As an AirTran pilot, I would greatly appreciate any insight you may have. I am also not sure what you mean by "your group". Is it management, the pilot group, or some other group. I think you mean management, as they are the "group" that has increased the offer. Lastly, can you please explain to me how I can get my head shoved so far up my ars that I have no clue about what is going on at my own company, let alone someone else's. It seems to me you are an expert at that.

 

[Eagle757shark]

so much for yall raises and a contract that's been expired for over 2 years...typical of your group

WHAT the devil does that mean? Our contract negotiations are ongoing! Thank you! What does the AirTran Pilot group have to do with what deals our management gets into? If anything this deal has probable spead up our negotiations. This deal will not make or break our raises. The contract that I work under right now might not be the best, but it does afford me the opportunity to earn a living. Once a TA is reached, the pilots will have an opportunity to vote on it. Are you expecting AirTran pilots to make a statement for this industry, that your spineless butt is so afraid to stand for from whatever rock you crawled from? This Midwest deal is a deal that will be financed most likely. So if you are equating them raising the offer, to taking something from the pilots, then you need to go learn more about corporate america! Sir!

 

[FlyWolf]

If Midwest BoD doesn't negotiate with airTran on the latest offer then they are looking after their jobs and not the shareholders interst, Tim made 1.25 Mil according to this article: http://www.jsonline.com/story/index.aspx?id=584701 So maybe he is just worried about that fat paycheck.

 

[-9Capt]

so much for yall raises and a contract that's been expired for over 2 years...typical of your group

Hey dickhole, contracts don't expire, they become amendable.

 

[Flydaplane]

I heard that Tim has several thousand stock options that he got prior to 9/11 that he won't make money on unless the stock is at least $18 a share. Of course this is from the "rumor network" so who knows for sure.

 

[pilotmyf]

*snicker*



Incidentally, with the increased offer price, it's obvious we're not going to walk away unless forced to...

Sadly enough.

so pretty much airtran is a hemoroid to midwest?

 

[Lear70]

so pretty much airtran is a hemoroid to midwest?

Ummm... not following your logic leap there, chief.

Hey dickhole, contracts don't expire, they become amendable.

ROFLMAO!

Don't hold back, now... tell us how you REALLY feel about it!

 

[Kharma Police]

so pretty much airtran is a hemoroid to midwest?

Exactly, we are the hemorrhoid and you are the a-hole.