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AirTran Extends Tender Deadline For Midwest  
User currently offlineMainland From United States of America, joined Jun 2004, 303 posts, RR: 0
Posted (7 years 5 months 3 weeks 1 day 15 hours ago) and read 3217 times:

Getting a bit messier. As expected, they're extending the offer deadline to give Midwest shareholders more time to tender their shares. Off the wire:

AirTran extends Midwest takeover offer, proposes directors
http://www.marketwatch.com/News/Stor...F727F59CA%7d&siteid=yhoo&dist=yhoo

LONDON (MarketWatch) -- AirTran Holdings said it's going to extend its hostile takeover for Midwest Air Group to March 8, from an earlier deadline of Feb. 8, so that Midwest shareholders can receive all the information they need. AirTran also proposed adding three directors -- Jeff Erickson, Charles Kalmbach and John Albertine -- to Midwest's board. AirTran is offering about $345 million in cash and stock for Midwest.

Company release from AirTran:
http://biz.yahoo.com/prnews/070201/nyth049.html?.v=85

[Edited 2007-02-01 13:48:17]


You don't need a passport to know what state you're in...
42 replies: All unread, showing first 25:
 
User currently offlineMainland From United States of America, joined Jun 2004, 303 posts, RR: 0
Reply 1, posted (7 years 5 months 3 weeks 1 day 15 hours ago) and read 3215 times:

More info, only 38,966 Midwest shares have been tendered as of Jan 31.

Source:
http://yahoo.reuters.com/news/articl...18_N01201259&type=comktNews&rpc=44



You don't need a passport to know what state you're in...
User currently offlineQuickmover From United States of America, joined Mar 2004, 2490 posts, RR: 0
Reply 2, posted (7 years 5 months 3 weeks 1 day 12 hours ago) and read 3128 times:

I don't quite understand how extending the offer will help. Maybe some of the bigger shareholders won't tender until the last minute. 40,000 shares is unbelievable considering where the stock was trading before the offer.

I'm starting to think this deal won't happen. YX's publicity campaign against FL makes me wonder if FL should even want to pursue this deal. They have really "Poisoned the water" so to speak. FL is really looking like the bad guys here and they don't deserve it IMO.

I still think there is nothing special about YX's plan to expand with crj200s. There is no way to make those jets as comfortable as their 717s in 2x2 seating (or even 2x3 for that matter). If the crj200 is their plan for the future, they need to remember how it worked out for Independence Air.


User currently offlineCorsair2 From United States of America, joined Jan 2001, 248 posts, RR: 0
Reply 3, posted (7 years 5 months 3 weeks 1 day 11 hours ago) and read 3083 times:

JL would do his company a better service to increase the company's earnings per share value. FL's earnings per share were the lowest in the industry for 2006. The attempt at buying YX is laughable at this point if only 38,000 shares have been acquired. I can see the ticker on the wall over at the Galena Corporation - 9,000,000 shares to go!

BTW, Midwest's earnings estimate for this year is 1.70/ share which would put their stock price at near $25/ share at a modest P/E ratio by the year's end.



"We have clearance Clarence. Roger, Roger. What's our vector Victor?"
User currently offlineTVNWZ From United States of America, joined Feb 2006, 2352 posts, RR: 2
Reply 4, posted (7 years 5 months 3 weeks 1 day 11 hours ago) and read 3044 times:

Joe Leonard will find out very quickly if Northwest Mutual and Heartland want to play ball. this could be very embarrassing to him and the company if the board election fails by a wide margin, which is what I expect.

FL must be getting desperate because they know who has the largest blocks of shares and they know who they have to convince. But, they are acting like they don't. This comes across as either business stupid or business naive. Either way, it is getting them zero respect with the institutional shareholders they have to convince. I do not understand this strategy. It smells desperate, unsophisticated, and ignorable.


User currently offlineQuickmover From United States of America, joined Mar 2004, 2490 posts, RR: 0
Reply 5, posted (7 years 5 months 3 weeks 1 day 11 hours ago) and read 3037 times:

I wonder if a F9/FL merger has ever been considered seriously. I know the old argument about the fleet types not matching up, but look how well USAir is doing with numerous fleet types. Maybe it doesn't matter as much as thought.

User currently offlinePositiverate From United States of America, joined May 2005, 1590 posts, RR: 8
Reply 6, posted (7 years 5 months 3 weeks 1 day 11 hours ago) and read 3013 times:

I always viewed this merger as AirTran's response to the US/DL proposal, believeing that AirTran felt they needed to do this deal to increase their relative size to a combined US/DL at ATL. I wonder if AirTran 's committment to the deal will wane now that US/DL is dead.

User currently offlineSteeler83 From United States of America, joined Feb 2006, 9176 posts, RR: 18
Reply 7, posted (7 years 5 months 3 weeks 1 day 11 hours ago) and read 3004 times:

Quoting Positiverate (Reply 6):
I always viewed this merger as AirTran's response to the US/DL proposal, believeing that AirTran felt they needed to do this deal to increase their relative size to a combined US/DL at ATL. I wonder if AirTran 's committment to the deal will wane now that US/DL is dead.

Interesting statement. I would like very much for that to happen, as I do not want to see YX disappear. That would make sense if that were to happen, and if that is why FL wanted to take YX over. Others have said that it was so that FL could go into MKE, and acquiring YX was their way in...



Do not bring stranger girt into your room. The stranger girt is dangerous, it will hurt your life.
User currently offlineMainland From United States of America, joined Jun 2004, 303 posts, RR: 0
Reply 8, posted (7 years 5 months 3 weeks 1 day 10 hours ago) and read 2976 times:

I would've expected a bit more shares to be tendered at this point. From AirTran's point of view, they'll say they haven't had the shareholder list, the time to get their message out there, etc., etc.. Regardless, a majority of shareholders won't understand the details of this deal and will just vote along the lines of what the board tells them. This certainly seems to be the case so far. AirTran hasn't filed anything with the SEC yet, I imagine they'll wait to the Feb 8th expiration to formally file their extention, but when they do they'll say how many shares have been tendered to that point. It'll be interesting to see how much a difference a week makes.

To that end, I don't know what good putting up their own slate of directors will do. Midwest will recommend their shareholders vote against AirTran's three and that should be that.



You don't need a passport to know what state you're in...
User currently offlineQuickmover From United States of America, joined Mar 2004, 2490 posts, RR: 0
Reply 9, posted (7 years 5 months 3 weeks 1 day 10 hours ago) and read 2960 times:

Are the directors elected at the annual meeting? If so, when is it?
Thanks


User currently offlineMainland From United States of America, joined Jun 2004, 303 posts, RR: 0
Reply 10, posted (7 years 5 months 3 weeks 1 day 10 hours ago) and read 2944 times:

Yes, directors are elected at the annual meeting. Proxy forms have not been filed with the SEC yet, but Midwest has held its meeting between April 20th - 26th in past years, so it should fall within that range again this year. The shareholder of record date to vote at the meeting should fall within the first week of March.


You don't need a passport to know what state you're in...
User currently offlineDeltaDAWG From United States of America, joined May 2006, 775 posts, RR: 1
Reply 11, posted (7 years 5 months 3 weeks 1 day 6 hours ago) and read 2833 times:

If, and if the FL appointed folks were elected to the BOD, what real impact would it have? Is there any filibustering that the three FL appointees could carry out to help persuade the rest of the BOD or shareholders?

If elected could they call for the termination of Tim Hoeksema or others on the board? Also, could they move for a termination of the poison pill?

Quoting Quickmover (Reply 5):
I wonder if a F9/FL merger has ever been considered seriously. I know the old argument about the fleet types not matching up, but look how well USAir is doing with numerous fleet types. Maybe it doesn't matter as much as thought

I too like the idea of FL/F9 as a marriage. Considering the strong hub sites of ATL, MCO & DEN along with the focus cities of BWI, BOS, maybe SFO just seems to go well together. Fleet commonality can be absorbed and worked around I believe as well. The only problem though is that F9 is strapped for gate space at DEN just like FL at ATL. But with the western destinations that F9 has already perhaps they could build SFO, ONT or SJC into a West Coast hub and have a place to park the incoming 737's.



GO Dawgs, Sic' em, woof woof woof
User currently offlineSrbmod From , joined Dec 1969, posts, RR:
Reply 12, posted (7 years 5 months 3 weeks 1 day 6 hours ago) and read 2820 times:

Quoting Quickmover (Reply 5):
I wonder if a F9/FL merger has ever been considered seriously. I know the old argument about the fleet types not matching up, but look how well USAir is doing with numerous fleet types. Maybe it doesn't matter as much as thought.

That boat sailed a number of years ago, IMHO. While some think that the marketing agreement between the two airlines may be the precursor to an eventual merger, I envision it as the formative stages of an LCC alliance.

Quoting Positiverate (Reply 6):
I always viewed this merger as AirTran's response to the US/DL proposal, believeing that AirTran felt they needed to do this deal to increase their relative size to a combined US/DL at ATL. I wonder if AirTran's committment to the deal will wane now that US/DL is dead.

Considering that the original offer made to Midwest was made in October of 2006 (And the offer was made public after the US buyout offer to DL), and US Airways' bid wasn't made public until November 15th, that's probably not the case. So unless FL had some insider info on the buyout deal, I doubt it played any role in their decision to go after YX. AirTran is pursuing Midwest in order to gain a midwestern hub in which to grow from. For the foreseeable future, their operations @ ATL is getting close to being maxed out. Even if US/DL were to have merged, it probably would have only led to a small increase in service at ATL, presumably to cities in the region that DL (or DL Connection) didn't fly to out of ATL.


User currently offlinePositiverate From United States of America, joined May 2005, 1590 posts, RR: 8
Reply 13, posted (7 years 5 months 3 weeks 1 day 6 hours ago) and read 2812 times:

Quoting Srbmod (Reply 12):
Quoting Positiverate (Reply 6):
I always viewed this merger as AirTran's response to the US/DL proposal, believeing that AirTran felt they needed to do this deal to increase their relative size to a combined US/DL at ATL. I wonder if AirTran's committment to the deal will wane now that US/DL is dead.


Considering that the original offer made to Midwest was made in October of 2006 (And the offer was made public after the US buyout offer to DL), and US Airways' bid wasn't made public until November 15th, that's probably not the case. So unless FL had some insider info on the buyout deal, I doubt it played any role in their decision to go after YX. AirTran is pursuing Midwest in order to gain a midwestern hub in which to grow from. For the foreseeable future, their operations @ ATL is getting close to being maxed out. Even if US/DL were to have merged, it probably would have only led to a small increase in service at ATL, presumably to cities in the region that DL (or DL Connection) didn't fly to out of ATL.

Perhaps, but their December announcement of a hostile takeover came after the US/DL news, which gives me the impression that the need to acquire Midwest became more urgent in their minds once US/DL announced.


User currently offlineDeltaDAWG From United States of America, joined May 2006, 775 posts, RR: 1
Reply 14, posted (7 years 5 months 3 weeks 1 day 6 hours ago) and read 2795 times:

Quoting Positiverate (Reply 13):
Perhaps, but their December announcement of a hostile takeover came after the US/DL news, which gives me the impression that the need to acquire Midwest became more urgent in their minds once US/DL announced.

I believe the urgency is to find a hub airport that they can grow that is not on the East coast and has plenty of gate space for incoming 737's. The fact that YX has some extra 717 lying around doesn't hurt either.



GO Dawgs, Sic' em, woof woof woof
User currently offlineTVNWZ From United States of America, joined Feb 2006, 2352 posts, RR: 2
Reply 15, posted (7 years 5 months 3 weeks 1 day 6 hours ago) and read 2795 times:

Quoting DeltaDAWG (Reply 11):
If, and if the FL appointed folks were elected to the BOD, what real impact would it have? Is there any filibustering that the three FL appointees could carry out to help persuade the rest of the BOD or shareholders?

If elected could they call for the termination of Tim Hoeksema or others on the board? Also, could they move for a termination of the poison pill?

If they were elected the airline would be sold immediately to Airtran. The institutional invstors who control the lions share of stock would not vote for the Airtran directors if they supported current Midwest management. If they voted for the Airtran directors they would be telling Tim to sell. The other board members would have no choice but vote for Airtran's offer given that outcome.

However, Airtran will fail, possibly embarrassingly so.


User currently offlineQuickmover From United States of America, joined Mar 2004, 2490 posts, RR: 0
Reply 16, posted (7 years 5 months 3 weeks 1 day 5 hours ago) and read 2762 times:

Quoting DeltaDAWG (Reply 11):
The only problem though is that F9 is strapped for gate space at DEN just like FL at ATL.

I think that problem has been fixed. United gave up 6 gates on A. I know it's not alot, but perhaps enough for the next year or two. I believe YX will eventually be back on the market down the road. How does DEN, MKE, MCI, BWI, ATL, MCO sound for hubs and focus cities?


User currently offlineMke717spotter From United States of America, joined Dec 2005, 2438 posts, RR: 5
Reply 17, posted (7 years 5 months 3 weeks 1 day 2 hours ago) and read 2679 times:

Quoting Mainland (Reply 1):
only 38,966 Midwest shares have been tendered as of Jan 31

I dont know much about stocks and stuff, so is that a lot or not really at this point for FL to pull this off?



Will you watch the Cleveland Browns and the Detroit Lions on Sunday? Only if coach Eric Mangini resigned after a loss.
User currently offlineSideflare75 From United States of America, joined May 2005, 613 posts, RR: 1
Reply 18, posted (7 years 5 months 3 weeks 1 day 1 hour ago) and read 2641 times:

Quoting Mke717spotter (Reply 17):
I dont know much about stocks and stuff, so is that a lot or not really at this point for FL to pull this off?

It is less than 1% of the outstanding shares of YX. Not good if that is all they can get but I'm sure that will change. Or maybe it won't. My guess is they will have to raise the offer if they want more support from the shareholders.


User currently offlineMainland From United States of America, joined Jun 2004, 303 posts, RR: 0
Reply 19, posted (7 years 5 months 3 weeks 1 day 1 hour ago) and read 2629 times:

38,966 shares out of 18,604,442 is less than 1% of the total outstanding shares. So AirTran has a long way to go to say the least.


You don't need a passport to know what state you're in...
User currently offlineMlsrar From United States of America, joined Mar 2000, 1417 posts, RR: 8
Reply 20, posted (7 years 5 months 3 weeks 1 day 1 hour ago) and read 2615 times:

620 WTMJ was reporting that only 1% of the stockholders had shown interest in the deal at the current prices, FWIW.


I mean, for the right price I’ll fight a lion. - Mike Tyson
User currently offlineAlexPorter From , joined Dec 1969, posts, RR:
Reply 21, posted (7 years 5 months 3 weeks 1 day ago) and read 2605 times:

Quoting Mainland (Reply 19):
38,966 shares out of 18,604,442 is less than 1% of the total outstanding shares. So AirTran has a long way to go to say the least.

AirTran is offering shareholders $13.25 per share. Well Midwest shares are going for $13.51 on the market at the moment. No wonder hardly anyone is tendering shares to airTran.*

*Assuming I understand the concept of "tendering" correctly.

[Edited 2007-02-02 03:40:33]

User currently offlineTVNWZ From United States of America, joined Feb 2006, 2352 posts, RR: 2
Reply 22, posted (7 years 5 months 3 weeks 1 day ago) and read 2579 times:

Quoting Sideflare75 (Reply 18):
It is less than 1% of the outstanding shares of YX. Not good if that is all they can get but I'm sure that will change

And a lot or almost all of those shares are probably controlled by...Airtran.


User currently offlineImperialEagle From United States of America, joined Jan 2006, 2473 posts, RR: 23
Reply 23, posted (7 years 5 months 3 weeks 23 hours ago) and read 2549 times:
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Quoting DeltaDAWG (Reply 14):
I believe the urgency is to find a hub airport that they can grow that is not on the East coast and has plenty of gate space for incoming 737's. The fact that YX has some extra 717 lying around doesn't hurt either.

So what about a merger with AS? Too expensive?
If they are looking to obtain some sort of "critical mass" it would certainly give them a "West Coast" presence----and their pax would have access to some of the Pacific Rim carriers. (Just like their pax now have access to the European market from the "East Coast" at ATL and MCO, just to name a few.)

Oh well, IMO everyone should leave YX just the way it is.
I've been enjoying the chocolate chip cookies and extra leg-room for quite some time now(although severely limited by their small route system!) and don't want to see it dissapear! Big grin



"If everything seems under control, you're just not going fast enough!"
User currently offlineDeltaDAWG From United States of America, joined May 2006, 775 posts, RR: 1
Reply 24, posted (7 years 5 months 3 weeks 13 hours ago) and read 2468 times:

Quoting ImperialEagle (Reply 23):
So what about a merger with AS? Too expensive?

Yes, too expensive and yet another carrier that would probably fight tooth and nail to stay independent.

One thing that keep thinking about is that everyone talks about the fact that the current offer of $13.25 per share is lower than the current trading value of MEH stock of aroune $13.50. If you look at the historical value of MEH stock it has never been this high. I believe you can attribute the rise in the stock to the proposed buyout only. If FL withdraws its tender I believe you will see the stock fall back to below $10 easily and then the shareholders are going to be screaming "Where's my value Tim?" "Where's AirTran, come back AirTran, please!"


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GO Dawgs, Sic' em, woof woof woof
25 Tedex : YX + AS could be very interesting... Especially if operated as seperate carriers with common ownership and a strong marketing / codeshare agreement. I
26 Mke717spotter : Nothing to big, but yesterday YX announced RSW is going year round from Seasonal and also some enhancement to SFO.
27 Mainland : Not true, MEH traded higher than $13.50 back in the late 90's.
28 DeltaDAWG : Sorry, you are correct. I do remember the stock being upwards of $19-20 years and years ago. However, I also remember it plummeting down to around $3
29 Sideflare75 : What? As recently as 2002 this was a $20.00 stock and going back to 1998 to 2000 Midwest's stock was consistently over $30.00 and was even pushing $4
30 DeltaDAWG : I'm not, look back over the last five years. Look, I am not bashing YX, I fly them to MKE and CWA appx. once per month. I enjoy the flights, I like t
31 Quickmover : There's no doubt about that. If the offer was pulled, the price will retract some. I would also add that 2x2 seating on a 717 is nice, but 2x2 on tho
32 DeltaDAWG : This is a move I don't understand YX making. If they are touting the Signature Service so much to investors and in response to FL's offer, why push n
33 Post contains images ImperialEagle : You've got that right! I refuse to book a flight on a CRJ and will just travel another day if they swap one out on me. Every seasoned traveler I have
34 Quickmover : Maybe the availability of crj200s, because other carriers are dropping them in favor of the 70 seaters, is the reason YX thinks they can make money w
35 Sideflare75 : I only said you can't look back over the last year because that is the chart you used as an example, and I know you are not bashing Midwest. But when
36 JBo : That may be, but the CRJ-700 is far too large an aircraft for the type of regional operation YX maintains. Because YX is expanding their regional mar
37 Floridaflyboy : Did they get rid of the FRJ? I thought they were still operating.
38 JBo : The FRJs are still in the fleet and not going anywhere. We have a 12th aircraft coming online in March ... the FRJs are gradually supplanting existin
39 Mainland : New SEC filing out. AirTran only owns 200 shares of Midwest, and I'd presume they were part of the 38,966 tendered. "Relationships With Midwest As of
40 LASOctoberB6 : i dont get it.......if an airline does not want to be taken over, then why cant they just say no?
41 Sideflare75 : They can but as a publically traded company YX is really owned by the shareholders. If and when FL gets to a price that the shareholders demand a sal
42 TVNWZ : Probably not. You have to know who owns the airline and why. It is in friendly, local, big investor hands for this simple reason. The airline was fou
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