User avatar
deltadawg
Posts: 868
Joined: Sat May 13, 2006 2:56 am

FL Kinda Gets Support From YX Shareholders!?

Fri Mar 30, 2007 12:30 am

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.


link: http://news.morningstar.com/news/Vie...47EF40EB81_univ.xml&pgid=qtqnNews1
GO Dawgs, Sic' em, woof woof woof
 
rumorboy
Posts: 294
Joined: Sun Aug 25, 2002 1:06 am

RE: FL Kinda Gets Support From YX Shareholders!?

Fri Mar 30, 2007 12:38 am

Thats because Octavian has bought a lot of shares at about 13.00 plus a share. If Airtran pulls the plug they will be out a lot of money.
 
quickmover
Posts: 2137
Joined: Sat Mar 06, 2004 4:28 am

RE: FL Kinda Gets Support From YX Shareholders!?

Fri Mar 30, 2007 1:06 am

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
Posts: 590
Joined: Fri Aug 11, 2006 12:48 am

RE: FL Kinda Gets Support From YX Shareholders!?

Fri Mar 30, 2007 1:22 am

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.

717
 
daus
Posts: 232
Joined: Wed May 04, 2005 5:37 am

RE: FL Kinda Gets Support From YX Shareholders!?

Fri Mar 30, 2007 1:37 am

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
Posts: 417
Joined: Wed May 04, 2005 2:30 pm

RE: FL Kinda Gets Support From YX Shareholders!?

Fri Mar 30, 2007 1:46 am

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.
 
User avatar
mke717spotter
Posts: 1948
Joined: Thu Dec 01, 2005 9:32 am

RE: FL Kinda Gets Support From YX Shareholders!?

Fri Mar 30, 2007 3:11 am

Since the new deadline for this deal is coming up, anyone know the status on how many shares have been tendered? Is it likly FL would extend the deadline once again?
Will you watch the Cleveland Browns and the Detroit Lions on Sunday? Only if coach Eric Mangini resigned after a loss.
 
Cubsrule
Posts: 11428
Joined: Sat May 15, 2004 12:13 pm

RE: FL Kinda Gets Support From YX Shareholders!?

Fri Mar 30, 2007 9:57 am

Some discussion of this has occured already in
Midwest Gets Lawmaker Support Over Airtran (by TVNWZ Mar 27 2007 in Civil Aviation)
I can't decide whether I miss the tulip or the bowling shoe more

Who is online

Users browsing this forum: a380787, avi8tir, Baidu [Spider], barney captain, MuhammadAli, NG263, tootallsd, ulker32 and 276 guests