DeltaDAWG From United States of America, joined May 2006, 798 posts, RR: 1 Posted (8 years 6 months 2 weeks 1 day 22 hours ago) and read 2374 times:
Saw this on Morningstar.com and could not find a thread related to this particular story. Somewhat confirms that shareholders are holding out for more money, perhaps.
I know this is a hot button issue here but a major shareholder quoting that the board should consider an FL offer, albeit a higher one, is a serious move in the direction of a buyout it seems.
PULSE: Octavian funds would support a higher offer for Midwest Air3-27-07 8:40 AM EDT | E-mail Article | Print ArticleNEW YORK (MarketWatch) - Octavian Master Fund and its affiliates, which own about 5% of the shares of Midwest Air Group Inc. (MEH), said in a federal filing they supported the regional airline's resistance to a takeover offer from AirTran Holdings Inc.(AAI) but would support a merger under "the right terms." If AirTran raises its roughly $318 million cash-and-stock offer, extended until April 11, "we would strongly encourage and expect the board and management team of Midwest to abide by their fiduciary duties and immediately enter into good faith negotiations to effectuate a transaction," according to Octavian's filing.
Quickmover From United States of America, joined Mar 2004, 2519 posts, RR: 0
Reply 2, posted (8 years 6 months 2 weeks 1 day 22 hours ago) and read 2329 times:
This whole deal is kind of odd.
Midwest keeps saying the bid is too low. Airtran says they would consider paying more if they could look at the books, perform more due diligence, and pay for hidden value. Midwest won't open their books.
What do you do?
I can't see how they can look for a higher bid without at least talking to FL.
AirTran717 From United States of America, joined Aug 2006, 746 posts, RR: 4
Reply 3, posted (8 years 6 months 2 weeks 1 day 21 hours ago) and read 2308 times:
It's a little convoluted at this point. If they support a merger under the right conditions, one would think that they would at least hint at what the right conditions are. This is what we want. Can you match it? It's simple really. I suspect that if FL were to show some kind of good faith effort and entertain a higher offer... that Midwest would be more apt to open the ledger.
Daus From United States of America, joined May 2005, 291 posts, RR: 0
Reply 4, posted (8 years 6 months 2 weeks 1 day 21 hours ago) and read 2289 times:
Quoting Quickmover (Reply 2): if they could look at the books, perform more due diligence, and pay for hidden value. Midwest won't open their books.
This isn't really about the "books" per se. YX is a publically traded company, most of the required hard financial numbers are already out there. The dispute is that YX feels they have a greater value because of their strategic plan and market position, and feels that their current "book" value is too low.
Classic M&A situation. Buyers want to buy the current reality (or slightly less than that), while sellers want to sell the possible future (plus a little bit more). "The books say I'm worth $300 million but in 3 more years it will be worth $800 million". They usually end up somewhere in the middle.
Sideflare75 From United States of America, joined May 2005, 613 posts, RR: 1
Reply 5, posted (8 years 6 months 2 weeks 1 day 21 hours ago) and read 2278 times:
Tim did say yesterday in his presentation at the MKE press club that the offer is to low to open the books to FL. He did not come out and say we are not for sale because he has said many times any company is for sale if you have enough money. I think it is pretty clear that Tim is not looking to sell so why set a price. It is up to FL to come up to a price where the YX board is under pressure to begin to negotiate. The press did ask him how much is enough and he of course did not answer.
Octavian has bought their 5% stake in the company as a short term investment, nothing more. They of course will try and get FL to offer more, and if they do, they will then tell the board we think you should sell. The average price/share they paid for the one million+ shares they bought between Jan and March was $13.23 so they must definately think it is going to go higher. They have invested over 14 million in YX in just the last month and a half so I would think for that kind of investment they would want a nice return. Maybe also they think that even if it doesn't go through the YX stock price will rise above that eventually anyway.
Tim has talked to all these big investment firms and has laid out the entire plan so they know all the details of what YX will be doing in the next couple of years. Things we can only speculate on. This is still anyones guess right now in my opinion.