quickmover
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Airtran Raising Midwest Bid Again

Mon Apr 02, 2007 10:46 am

 
IADCA
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RE: Airtran Raising Midwest Bid Again

Mon Apr 02, 2007 10:50 am

Well, the poison pill still stands, so they'll somehow have to get enough shareholders to get a new board or the offer's still toast.
 
quickmover
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RE: Airtran Raising Midwest Bid Again

Mon Apr 02, 2007 10:56 am

I don't know. If the rest of the institutions are thinking like Octavian was last week, it might happen. You have to wonder if FL has contacted the institutions on the fence to find out how much it would take.
 
Cubsrule
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RE: Airtran Raising Midwest Bid Again

Mon Apr 02, 2007 11:06 am

Quoting Quickmover (Reply 2):
You have to wonder if FL has contacted the institutions on the fence to find out how much it would take.

How many institutions are really on the fence? MEH has a lot of long-term investors who are in it for the long run, and in the long run, this is a piss poor deal.
I can't decide whether I miss the tulip or the bowling shoe more
 
TedEx
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RE: Airtran Raising Midwest Bid Again

Mon Apr 02, 2007 11:07 am

From the article:

Quote:
AirTran's flight operations have long been centered at Atlanta's Hartsfield-Jackson International Airport. It has fruitlessly sought a central hub near Chicago for several years to diversify its customer base and extend the reach of its rapidly expanding fleet of Boeing 717s and new 737s.

I'm Chicago based and I took my first YX flight this weekend. I'll just say that I wouldn't be likely to make the trip up to MKE to fly AirTran.
 
quickmover
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RE: Airtran Raising Midwest Bid Again

Mon Apr 02, 2007 11:11 am

Quoting Cubsrule (Reply 3):
How many institutions are really on the fence?

Only the ones who are concerned about the MEH stock price falling if FL gives up and pulls their bid.

I would suspect enough of them to get this deal done.
 
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JBo
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RE: Airtran Raising Midwest Bid Again

Mon Apr 02, 2007 11:12 am

I don't think this will sway much. However I could be wrong.

I can, however, predict how this thread will likely turn out:

The cocky armchair CEOs and FL cheerleaders will come out and say "Bye Bye Midwest."

The YX backers will stand their ground. Both sides will badmouth the other.

More of the same until the next round of news.
I'd take the awe of understanding over the awe of ignorance any day.
 
Cubsrule
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RE: Airtran Raising Midwest Bid Again

Mon Apr 02, 2007 11:24 am

Quoting Quickmover (Reply 5):

Only the ones who are concerned about the MEH stock price falling if FL gives up and pulls their bid.

I would suspect enough of them to get this deal done.

How many other institutional investors bought a substantial amount of MEH after December 13? And how much would the stock price really fall? I can't imagine it going any lower than $11.
I can't decide whether I miss the tulip or the bowling shoe more
 
MUWarriors
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RE: Airtran Raising Midwest Bid Again

Mon Apr 02, 2007 11:58 am

This will get interesting. Does FL have to announce where they are with tendered shares now that they changed the offer? I do think we will soon find out how far YX is willing to take the Poison Pill. I still have serious doubts about FL's plans, but I also think this offer will sway some shareholders as this is an increase in cash, not stock (in fact it is a slight decrease in stock). FL is now starting to put some of their own cash on the line instead of just taking cash out of YX. I am curious to see where this will go from here. I still think YX will hold out, but we shall see.
 
baw2198
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RE: Airtran Raising Midwest Bid Again

Mon Apr 02, 2007 12:55 pm

If anything I see YX's stock price falling first until after the poison pill gets enacted. Then I have a hunch after the poison pill , we're going to see the stock rally. Mind you, thats just a hunch, but if you think of it, the poison pill might rally YX's customer base more then FL is willing to think about.
"And remember, Keep your stick on the ice"--->Red Green
 
Mikey711MN
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RE: Airtran Raising Midwest Bid Again

Mon Apr 02, 2007 1:50 pm

Quoting BAW2198 (Reply 9):
If anything I see YX's stock price falling first until after the poison pill gets enacted.

Really? The offer is $15/share (at present FL stock price) while YX closed at $13.51. Only until FL pulls their bid, I would guess that shares of MEH will be quite active--and probably growing--tomorrow morning.

-Mike

/not a stock speculator
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steeler83
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RE: Airtran Raising Midwest Bid Again

Mon Apr 02, 2007 1:53 pm

Hey, (hey) You (you)! Get offa my cloud!

I am sure this is what many YX folks are saying to FL... I don't want YX to disappear into FL myself; YX is a unique airline...
Do not bring stranger girt into your room. The stranger girt is dangerous, it will hurt your life.
 
tsra
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RE: Airtran Raising Midwest Bid Again

Mon Apr 02, 2007 2:18 pm

Interesting but $15 will not be enough....... not yet
 
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mariner
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RE: Airtran Raising Midwest Bid Again

Mon Apr 02, 2007 2:57 pm

Quoting TSRA (Reply 12):
Interesting but $15 will not be enough....... not yet

Surely it is awfully close?

He may have to go to $15.50, but I would think this new offer - if it is confirmed - will sway a lot of shareholders.

???

mariner
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rj777
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RE: Airtran Raising Midwest Bid Again

Mon Apr 02, 2007 3:01 pm

I think this is going to end up like US going after DL.

"Keep Midwest MY Midwest!"
 
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deltadawg
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RE: Airtran Raising Midwest Bid Again

Mon Apr 02, 2007 9:32 pm

Quoting TedEx (Reply 4):
I'm Chicago based and I took my first YX flight this weekend. I'll just say that I wouldn't be likely to make the trip up to MKE to fly AirTran.

You don't have to. Pop over to MDW!

Out of curiosity, does anyone know how many institutions or large shareholders there are and how much they stock they control?

And does anyone here have YX stock that they would be willing to tender at $15 + the FL stock? Personally, it's starting to look very tempting to tender mine. I like YX and the service level they offer. Typically, I fly YX at least once per month sometimes twice from ATL-MKE-CWA r/t. The level of service they give far outweighs the other carrier that serves CWA. However, I bought 335 shares back in late '04 and another 100 in Dec. '05 and I could put that to good use on another stock to give me a good return. I personally do not believe that FL will shut MKE down as so many believe. I do think they will eventually cut some service to the small communities in WI/MI such as Muskegon, Rhinelander and Escanaba. But overall the seats offered will go up as well to some degree in MCI.

For some, try to detach yourself from the situation and look at the return on investment aspect. If I was a shareholder in one of the companies that holds a significant holding of YX and they did not take advantage of a profitable situation to make a decent profit for the bottom line and be able to pass along some dividends I would be pissed.

I like both of these airlines, they both have their strengths and weaknesses. If this is going to happen maybe both can benefit each other.
GO Dawgs, Sic' em, woof woof woof
 
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PanAm_DC10
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RE: Airtran Raising Midwest Bid Again

Mon Apr 02, 2007 9:40 pm

Quoting Mariner (Reply 13):
if it is confirmed

It is confirmed now as per the link below;

AirTran Increases Tender Offer to Midwest Shareholders

Substantial Increase to $15 per Share Represents 83 Percent Premium Above Midwest Stock Prior to Initial

OfferORLANDO, Fla., April 2 /PRNewswire-FirstCall/ -- AirTran Holdings, Inc. (NYSE: AAI), the parent company of AirTran Airways, today announced that it has substantially increased its offer to purchase all of the outstanding shares of Midwest Air Group (Amex: MEH), to $15.00 per Midwest share, based on the closing price of AirTran common stock on March 30, 2007. The offer consists of $9.00 in cash and 0.5842 of a share of AirTran common stock for each Midwest share. The total equity value of the exchange offer is $389 million.

http://pressroom.airtran.com/phoenix...l-newsArticle&ID=980525&highlight=

Regards, PanAm_DC10
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DAYflyer
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RE: Airtran Raising Midwest Bid Again

Mon Apr 02, 2007 9:43 pm

Everybody has their price. Its just a question of FL finding the magic number for most of them.
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Mainland
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RE: Airtran Raising Midwest Bid Again

Mon Apr 02, 2007 10:44 pm

Wow -- it would seem AirTran had little choice but to raise it's offer, as tendered shares actually WENT DOWN during March:

As of 5pm March 7th, 1,777,638 shares were tendered
As of 5pm March 30th, 1,703,151 shares were tendered

Granted, it's not much of a decrease....but, to say the least, it's still not the thing you want to see when trying to acquire another company.
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quickmover
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RE: Airtran Raising Midwest Bid Again

Mon Apr 02, 2007 10:58 pm

Quoting DeltaDAWG (Reply 15):
For some, try to detach yourself from the situation and look at the return on investment aspect. If I was a shareholder in one of the companies that holds a significant holding of YX and they did not take advantage of a profitable situation to make a decent profit for the bottom line and be able to pass along some dividends I would be pissed.

Exactly right.

Leonard has said before that they are going to stop bidding against themselves, but that was before the Octavian announcement last week. Granted, they only represent 5%, but you have to believe that FL has talked with Octavian and other institutions. My guess is that someone substantial has communicated to FL that $15 would swing their votes. Only time will tell if it's enough votes, but I doubt raising the bid happened without some communication with a major shareholder.
 
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knope2001
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RE: Airtran Raising Midwest Bid Again

Mon Apr 02, 2007 11:01 pm

While AirTran probably has little choice but to up their offer or walk away, they are effectively competing with themselves here. If I'm a shareholder, why should I think this $15 is the best I'll be able to do?

As for the "everybody has their price" perspective, that's undoubtedly true. However that doesn't really tell us much about what that price is or if it is anything AirTran will eventually offer. Neither does this 3rd public takeover price really give us a whole lot to work with. Just because it is their 3rd offer does not mean it is approaching what the MEH BoD would consider a reasonable price. Say AirTran's offer #2 had been $12.00 and today's offer #3 had been $13.00. By virtue of that being offer #3, some might think "c'mon, $13.00 has to be getting close...they've upped the offer twice now". But in fact we know that the January bid of $13.25 wasn't near enough. So just because this is offer #3 that does not mean it is getting close to the point which the BoD believes is fair. We know it is getting closER, but it could in theory still be miles short.
 
Cubsrule
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RE: Airtran Raising Midwest Bid Again

Mon Apr 02, 2007 11:48 pm

Here's an interesting nugget.

"AirTran further noted that investors who wish to vote at the Annual Meeting must purchase or trade Midwest shares by Tuesday, April 3, 2007, to be a shareholder by the record date."

So there's not much time for any new players to force something via a proxy fight at the annual meeting.

I don't know how much more cash FL can really raise for this thing. Their stock performance since December (off about 20%) means that they have to pour more cash into the deal for it to have equal value. I wonder if AAI's decline explains this:

Quoting Mainland (Reply 18):

As of 5pm March 7th, 1,777,638 shares were tendered
As of 5pm March 30th, 1,703,151 shares were tendered

Surely, folks did tender during March. That number should be inching up. Inching down is not a good sign.
I can't decide whether I miss the tulip or the bowling shoe more
 
jibblets
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RE: Airtran Raising Midwest Bid Again

Tue Apr 03, 2007 12:06 am

Quoting Mainland (Reply 18):
As of 5pm March 7th, 1,777,638 shares were tendered
As of 5pm March 30th, 1,703,151 shares were tendered

I'm not surprised at all. Look at the number of shares that Octavian was able to acquire in the past few months. Investors aren't stupid. The value of the deal hinges on the price of AAI's stock, which has fallen precipitously and consistently in the past six months. By un-tendering their shares selling outright to Octavian or whoever was buying on the speculation of a better deal, the smaller investors got a better deal than a potential sale to AirTran would have netted. AirTran has not done itself any favors by continuing to extend the deadline, though it obviously has little choice. A whole lot of smaller-volume investors in MEH are going to make a tidy profit, but it's not going to come from tendering now to AAI and waiting another month to see if it works out.
 
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deltadawg
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RE: Airtran Raising Midwest Bid Again

Tue Apr 03, 2007 12:07 am

Quoting Knope2001 (Reply 20):
So just because this is offer #3 that does not mean it is getting close to the point which the BoD believes is fair. We know it is getting closER, but it could in theory still be miles short.

But it also gives YX a message that FL is getting toward the end of their bid patience. If FL pulls out, the YX BOD has got to know that their stock will drop, most likely down into the $9-$10 range possibly a little lower, quite a significant loss of value.

As a rule of thumb, you typically take a profit of 30% and up and run with it. I would guess that the vast majority of shareholders bought their shares in the $8-$9 range, just a guess based on running average over the last year or two - and that's being somewhat generous since YX stock never got over $6 from mid '02 til second half of '05. At $15, that's an approximate 76% return on your investment based on a $8.50 buy price. Even at a $13 buy, the current offer would be an approximate 15.5% return on investment. If someone bought their stock at the low point of '04-'05 at say around $3.60/share then they would be looking at around 310% return in 2-3 years of investment.

Yes, everyone has their price but the YX BOD has to make the determination of whether the current bid is acceptable to vast majority of shareholders, not thinking about their job and their wife's cookie business.
GO Dawgs, Sic' em, woof woof woof
 
Cubsrule
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RE: Airtran Raising Midwest Bid Again

Tue Apr 03, 2007 12:13 am

Quoting DeltaDAWG (Reply 23):
If FL pulls out, the YX BOD has got to know that their stock will drop, most likely down into the $9-$10 range possibly a little lower, quite a significant loss of value.

There's no way the stock drops below $10, and I think it would actually settle closer to $11. I've got to run to class, but there are a couple of good reasons for this, and I'd be happy to explain them later.
I can't decide whether I miss the tulip or the bowling shoe more
 
Jaws707
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RE: Airtran Raising Midwest Bid Again

Tue Apr 03, 2007 12:27 am

I really hope this merger goes through soon. I think the current price is fair. I know Midwest wants more, but think about it, the more Airtran continues to pay for Midwest, the less Airtran has to reinvest in the business to help it grow. I think most people realize there are too many players in the US airline industry and this is a perfect merger to make a stronger company with 2 well placed hubs and great fleet commanality.
 
daus
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RE: Airtran Raising Midwest Bid Again

Tue Apr 03, 2007 1:03 am

Quoting Knope2001 (Reply 20):
Say AirTran's offer #2 had been $12.00 and today's offer #3 had been $13.00. By virtue of that being offer #3, some might think "c'mon, $13.00 has to be getting close...

And bear in mind these are only the offers that were public. This is for sure at least the fourth offer. The bidding starting way down in the low single digits before this was generally public. It's hard to look to credible when you are now at 3x to 4x your original offer.  Smile
 
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knope2001
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RE: Airtran Raising Midwest Bid Again

Tue Apr 03, 2007 2:03 am

Here's how I see things at this point.

Most smaller investors who are interested in the deal have long since cashed in. And why wouldn't they? When AirTran bid $11.25, the share price quickly shot above that. Then when they bid $13.25 the share price again exceeded that figure.

Now today, Midwest's trading price hasn't come close to the $15 offer, peaking briefly at $14.75 and holding mostly around the mid $14's. Why has it not shot up? I suspect there is real doubt that the $15 offer will happen, and even bigger doubt that a higher offer will come and be successful.

The current offer is $15.00, which may slump (as the other offers have) if AAI stock continues to be weak. At the moment the deal is worth $14.95 since AAI is down today. For all but the largest shareholders, I just don't think many are holding onto their shares waiting for a higher bid, and for those who may be I doubt they will be moved by $15.00. All along this process, Midwest has ferquently traded above the offer price. When the offer was $13.25, who would hold their shares to tender them to AAI for that bid when they could have sold them outright in the market for more? MEH hit the $14's a few times in the past few months and much of the time -- especially February -- it traded above the value of the AAI offer.

So I think that most of the smaller investors who were interested in making a quick buck on the buyout have already taken their profits and left. Those are the shares owned by the two independent hedge funds mentioned in the MKE Journal Sentinel story today. Their holdings total about 11%.

I think -- at least at the moment -- the price of MEH is showing the captial-m Market's collective opinon on the AAI buyout. This is probably it, and it probably isn't going to work. If there were going to be higher successful offers the trading price should be higher than $15. If this offer was gonig to succeed the price should be closer to $15 as well.

Of course opinions can change over time, and maybe MEH will rise above $15 in the next days. But today's price action really doesn't suggest the Market has faith in this deal anymore.
 
airtran717
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RE: Airtran Raising Midwest Bid Again

Tue Apr 03, 2007 2:15 am

Quoting JBo (Reply 6):
I don't think this will sway much. However I could be wrong.

I can, however, predict how this thread will likely turn out:

The cocky armchair CEOs and FL cheerleaders will come out and say "Bye Bye Midwest."

The YX backers will stand their ground. Both sides will badmouth the other.

More of the same until the next round of news.

Never a dull moment here on A.net. LOL Like anything else, based on money, it talks and everything else walks. The bottom line is money, not public opinion. Get over it and move on.

717
 
daus
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RE: Airtran Raising Midwest Bid Again

Tue Apr 03, 2007 2:29 am

MONDAY, April 2, 2007, 11:37 a.m.
By Avrum D. Lank

Midwest to respond to AirTran by April 13
The board of Midwest Air Group Inc. (MEH) will make a recommendation to shareholders no later than April 13 on a revised purchase offer by AirTran Holdings Inc. (AAI).

In a statement, the board of the Oak Creek parent of Midwest and Skyway Airlines asked that "shareholders take no action at this time in response to the announcement" of the higher offer. It added that "consistent with its fiduciary duties, and in consultation with its independent financial and legal advisers, the company's board will review and consider AirTran's offer."
...

http://www.jsonline.com
 
tsra
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RE: Airtran Raising Midwest Bid Again

Tue Apr 03, 2007 2:52 am

So the circle of the YX/FL merger life begins again. Let me guess..... YX BoD will say it is not enough money and their expansion plan is better for the shareholder. FL will then spin some info and say YX is not doing its fiduciary duty. YX will announce more expansion and at the shareholders meeting announce 10 used 738 to replace the Mad Dogs.......blah blah blah..... Let the fun begin
 
b737700doctor
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RE: Airtran Raising Midwest Bid Again

Tue Apr 03, 2007 3:45 am

" The Board of Directors of Midwest Air Group, Inc. (Amex: MEH - News), parent company of Midwest Airlines, today requested that its shareholders take no action at this time in response to the announcement by AirTran Holdings, Inc. (NYSE: AAI - News) that it has revised the terms of its unsolicited exchange offer to acquire all outstanding shares of Midwest. Consistent with its fiduciary duties, and in consultation with its independent financial and legal advisors, the company's board will review and consider AirTran's offer and make a recommendation to shareholders no later than April 13."
Boeings are the best built planes
 
F9Animal
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RE: Airtran Raising Midwest Bid Again

Tue Apr 03, 2007 4:06 am

Quoting DAYflyer (Reply 17):
Everybody has their price. Its just a question of FL finding the magic number for most of them.

I am very fond of Air Tran, but I also have a love for Midwest. Both airlines have a totally different culture, and I really would miss seeing Midwest around. Midwest has done a fine job of turning things around, and I really think they have found the road to success. While everyone has a price, I just can't see the cultures mixing too well.
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srbmod
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RE: Airtran Raising Midwest Bid Again

Tue Apr 03, 2007 5:01 am

This may be the offer that opens the flood gates. Some of the institutional investors were lukewarm to the original offer and gave indications that they would be open to a higher offer. $15 is probably the magic number some folks have been waiting for.

This new offer really does put Midwest management's in a bad place now. If they reject the new offer and AirTran pulls their offer and shelves their offer, shares of YX will plummet (As AirTran will sell off the shares they have and others will follow suit) and there will be some very angry stockholders as a result. The prices MEH has been trading at are because of AAI's offer, not because investors think that the airline's plans to go it alone are good. If they take the offer, then they risk angering some stockholders for either selling out or not holding out for a better offer.

Even if AirTran finally gets what they want, this merger will not be pretty when it comes to integrating the two companies. The words "shotgun wedding" come to mind.
 
quickmover
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RE: Airtran Raising Midwest Bid Again

Tue Apr 03, 2007 5:22 am

Quoting Srbmod (Reply 33):
This may be the offer that opens the flood gates. Some of the institutional investors were lukewarm to the original offer and gave indications that they would be open to a higher offer. $15 is probably the magic number some folks have been waiting for.

Confirmed here.

Looks like this is the final offer. Also interesting that institutions are communicating with Leonard.

From Yahoo:

AirTran Makes Final Offer for Midwest
Monday April 2, 3:51 pm ET
By Emily Fredrix, AP Business Writer
AirTran: $389 Million Is Final Offer for Midwest


MILWAUKEE (AP) -- The head of AirTran Holdings Inc. said Monday the company has made its final offer for rival Midwest Air Group Inc., a cash and stock deal worth $389 million.
The owner of AirTran Airways raised its previous offer of $345 million nearly 13 percent Monday in its hostile bid for the regional airline that prefers to go it alone.

ADVERTISEMENT


The newest bid by Orlando, Fla.-based AirTran is valued at $15 per Midwest share, based on the closing price of AirTran common stock on Friday. The offer consists of $9 in cash and 0.5842 shares of AirTran common stock for each Midwest share.

"We're not going to go higher than this. This is our last number," AirTran Chairman and Chief Executive Joe Leonard told The Associated Press. "They're going to have to make a choice -- do they take $15 a share or hope the stock doesn't get back down to $6 or $7, where it was before we came in."

Milwaukee-based Midwest's board of directors has rejected AirTran's offers, saying they undervalue the company.

The latest offer would be an 11 percent premium over Midwest Air's closing price of $13.51 Friday on the American Stock Exchange.

Midwest is recommending shareholders take no action until its board of directors makes a recommendation, which will happen within 10 business days, spokeswoman Carol Skornicka said.

Shares of Midwest traded at a new 52-week high of $14.75 on the news. They rose 89 cents, or 6.59 percent, to $14.40 Monday afternoon on the American Stock Exchange. Shares of AirTran rose 6 cents to $10.33 on the New York Stock Exchange.

AirTran's efforts to buy Midwest, which go back more than a year, have steadily increased as Midwest rejected them. Midwest's board quietly declined AirTran's first offer of about $78 million, or $4.50 a share, in the summer of 2005.

The news of a potential buyout became public in mid-December, when AirTran disclosed it had bid $11.25 per share on Oct. 20 for Midwest Air Group, which also operates Midwest Connect. Midwest turned down the $290 million offer on Dec. 6.

AirTran then upped the offer in January to $345 million, offering shareholders $13.25 a share in cash and stock.

AirTran has said the merger makes sense, given the two companies' cultures and geographies. Midwest's roughly 345 flights a day serve 50 cities, typically in the East and West while AirTran's 700 flights a day serve 56 cities primarily in the North and South.

Leonard envisions the combined company having 1,000 departures a day in 74 cities, generating revenues of $3.5 billion a year. Despite the rejections, AirTran wants the deal to go through, he said.

"We're hopeful," he said. "It kind of appears that this management team and this board are not inclined to sell to anybody at any price. So we're relying on the shareholders to vote with their pocketbook here."

Midwest Air Group CEO Tim Hoeksema told the AP in late February that he fears Midwest would lose its charm -- and perks like wide leather seats and chocolate chip cookies -- if it merged with the low-cost carrier.

But Leonard has said the new company would combine the best of both airlines, including the traditional Midwest perks.

The latest offer expires May 16. Another rejection could set up a showdown when Midwest holds its annual shareholders meeting on May 23. AirTran has nominated three members to Midwest's nine-member board of directors.

AirTran said it has been told by The Bank of New York, the exchange agent for the offer, that some 1.7 million shares had been tendered as of close of business on Friday. That represents about 7 percent of Midwest common stock, according to Midwest filings with the Securities and Exchange Commission in January.

Leonard said institutional investors have told him they would consider selling their shares for $15 each.

Octavian Advisors LP, which has a 5 percent stake in Midwest, said the $345 million offer undervalued Midwest in a SEC filing last month. Richard Hurowitz, Octavian's chief executive officer, declined to say what price he thought Midwest deserved but described the latest bid as good news.

"We're very encouraged by the offer from AirTran, and we think both sides ought to come together to negotiate," Hurowitz said.

The latest offer shows AirTran is going after institutional investors who bought the stock over the past few months on the assumption that it will be sold, said Darryl Jenkins, an independent airline industry expert.

Jenkins, based in Marshall, Va., said a combined company would have a strong national presence and could entice new corporate accounts, which generate more revenue than individual passengers.

"AirTran really wants this one, and as mergers go out there, this isn't a bad one, not even remotely," Jenkins said.

Midwest: http://www.midwestairlines.com

AirTran: http://www.airtran.com
 
sideflare75
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RE: Airtran Raising Midwest Bid Again

Tue Apr 03, 2007 6:50 am

Quoting Srbmod (Reply 33):
(As AirTran will sell off the shares they have and others will follow suit)

Except AirTran doesn't own more than 200 shares of YX stock I believe. I don't think that will have much affect on the price. Will the price drop? Sure. But how much seems to be the big question. Joe says maybe it will go back to $6.00. That's very doubtful and that is just him trying to scare people. Nothing more. Especially since it was well above that when this thing went public and moving up nicely on it's own.

I hope this is Joe's "last offer" and he goes away. Of course they have also said many times they will not bid against themselves and we see where that has gotten us. Offer number 4. I guess now it is up to Tim and his team to prove to the shareholders once and for all that YX is worth more than this. It is going to be an interesting couple of months.
 
gr8slvrflt
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RE: Airtran Raising Midwest Bid Again

Tue Apr 03, 2007 7:08 am

ORLANDO, Fla., April 2 /PRNewswire-FirstCall/ -- AirTran Holdings, Inc. (NYSE: AAI), the parent company of AirTran Airways, today issued the following statement from Joe Leonard, the company's chairman and chief executive officer:

"Midwest has said that its board will evaluate carefully AirTran's increased offer which substantially enhanced the latest tender offer of $15 per share for all of the Midwest shares and make its recommendation to investors no later than April 13. We believe that all stakeholders would benefit more from our proposal than from any stand-alone plan that Midwest can support. It is time for the Midwest board to demonstrate its commitment to shareholder value, not to entrenchment, and enter into discussions to learn more about our proposal. 'Just say no' is a slogan, not a way around the board's fiduciary duty, particularly when its primary advisor is being paid a premium to justify remaining independent."

The offer, which is being made through Galena Acquisition Corp., a wholly owned subsidiary of AirTran, represents a premium of 83 percent over the 30-day average closing price of Midwest common stock prior to when AirTran made its initial proposal. AirTran's first offer to acquire all of Midwest's common stock was priced at $11.25 per share on October 20, 2006. Today's offer also represents an approximately 65 percent premium over the closing price of Midwest stock on December 12, 2006, the day before AirTran disclosed its initial October 20, 2006, offer. As a result of this increase, the expiration date of the tender has been extended to terminate on May 16, 2007.
I work for Southwest, but the views expressed are my own and do not necessarily represent those of Southwest.
 
Cubsrule
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RE: Airtran Raising Midwest Bid Again

Tue Apr 03, 2007 9:32 am

Quoting Sideflare75 (Reply 35):
Joe says maybe it will go back to $6.00.

Joe is full of shit. The stock was trading at $9.25 when the offer was announced. YX's actions in the past 3 months, namely expansion and signing up OO and ZK, as well as their continued profitablility probably would have pushed the stock price up to at least $10 in the absence of the buyout offer, and even when FL pulls the offer, there will likely be a bit of a continued affect related to the market seeing MEH as worth more. The stock will not trade below $10 if/when FL pulls the offer, and it may well settle closer to $11.
I can't decide whether I miss the tulip or the bowling shoe more
 
WestJetYQQ
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RE: Airtran Raising Midwest Bid Again

Tue Apr 03, 2007 9:43 am

I have said it Before, I will say it again! I am sick and tired of all this talk of airline mergers! I know most of you probably agree.

Airlines should stay the way they are. We don't want to lose those precious airline!  Wink Also, The more airlines there are, the cheaper the tickets!

Cheers
Carson
Will You Try to Change Things? Use the Power that you have, the Power of a Million new Ideas.
 
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mariner
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RE: Airtran Raising Midwest Bid Again

Tue Apr 03, 2007 10:04 am

Quoting WestJetYQQ (Reply 38):
I am sick and tired of all this talk of airline mergers! I know most of you probably agree.

Don't include me in that, because I don't agree.

It's just sentimentality to expect the airline world to stay the same. I feel sorry for any airline staff that lose their jobs in a merger, but beyond that, I don't "miss" TWA, for example. I flew with them a lot in their last years and it just got more and more depressing - and I certainly don't miss Pan Am, whose service was atrocious in its declining years.

I preferred BOAC when it was BOAC and not BA, but that was for sentimental reasons, and I surely don't miss BEA.

I had nothing against the US/Delta merger - I was neither for it nor against it - I was just astonished that Mr. Parker, who is quite clever, played his hand so badly.

Mr. Leonard of Airtran seems determined to acquire Midwest. If he can do it, good luck to him. If he can't - at least he tried.

mariner
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JBo
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RE: Airtran Raising Midwest Bid Again

Tue Apr 03, 2007 11:01 am

Quoting Mariner (Reply 39):
It's just sentimentality to expect the airline world to stay the same. I feel sorry for any airline staff that lose their jobs in a merger, but beyond that, I don't "miss" TWA, for example. I flew with them a lot in their last years and it just got more and more depressing - and I certainly don't miss Pan Am, whose service was atrocious in its declining years.

In lieu of your sentiments, it should be stated that Midwest isn't declining. If anything, they've reached the nadir of their decline and are on their way back up.
I'd take the awe of understanding over the awe of ignorance any day.
 
AirTranTPAramp
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RE: Airtran Raising Midwest Bid Again

Tue Apr 03, 2007 11:38 am

i have a feeling, that this is the nail in the coffin for Midwest! we have a lot of cash hungry investors in this country and i know some of you midwest lovers are going to bash me for this, but however keep in mind this is just my opinion. I bet we will see octavian and a few other major shareholders will indeed cash in. I personally am in favour of a YX/FL merger, i think it would do MKE/MCO/ATL/MCI some good especially MKE/MCI! lets see how many YX supporters will bash me on this one! "Make Midwest our AirTran"
Fly SONG jets!
 
Cubsrule
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RE: Airtran Raising Midwest Bid Again

Tue Apr 03, 2007 11:43 am

Quoting AirTranTPAramp (Reply 41):
i think it would do MKE/MCO/ATL/MCI some good especially MKE/MCI!

There are two possible outcomes at MKE:

1) FL drops MKE like a bad habit

2) NW destroys FL (like Florida is destroying OSU right now).

It would not a matter of if FL failed but rather when.
I can't decide whether I miss the tulip or the bowling shoe more
 
sideflare75
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RE: Airtran Raising Midwest Bid Again

Tue Apr 03, 2007 12:02 pm

Quoting AirTranTPAramp (Reply 41):
i have a feeling, that this is the nail in the coffin for Midwest! we have a lot of cash hungry investors in this country and i know some of you midwest lovers are going to bash me for this, but however keep in mind this is just my opinion. I bet we will see octavian and a few other major shareholders will indeed cash in. I personally am in favour of a YX/FL merger, i think it would do MKE/MCO/ATL/MCI some good especially MKE/MCI! lets see how many YX supporters will bash me on this one! "Make Midwest our AirTran"

Nah we won't bash you for your opinion. That is all it is after all. Besides didn't you get bashed enough the other day for posting on Anet while checking in people at your ticket counter? I would think you have had enough by now.

Just one question.Why do you think this will be so good for MKE/MCI?
 
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mariner
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RE: Airtran Raising Midwest Bid Again

Tue Apr 03, 2007 12:08 pm

Quoting JBo (Reply 40):
In lieu of your sentiments, it should be stated that Midwest isn't declining. If anything, they've reached the nadir of their decline and are on their way back up.

I didn't suggest - or didn't intend to suggest - that Midwest is declining. BOAC wasn't "declining" either.

If you mean my comments about TWA, that was, I think, the most recent completed US airline merger. The reasons were different, but it was still a merger/takeover.

mariner
aeternum nauta
 
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JBo
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RE: Airtran Raising Midwest Bid Again

Tue Apr 03, 2007 12:20 pm

Quoting Mariner (Reply 44):
I didn't suggest - or didn't intend to suggest - that Midwest is declining. BOAC wasn't "declining" either.

Wasn't necessarily implying you suggested that sentiment, I just felt it was worth mention for the viewers at home.

Quoting AirTranTPAramp (Reply 41):
i have a feeling, that this is the nail in the coffin for Midwest! we have a lot of cash hungry investors in this country and i know some of you midwest lovers are going to bash me for this, but however keep in mind this is just my opinion. I bet we will see octavian and a few other major shareholders will indeed cash in.

That may be, but Midwest still has a few cards in their favor:

- Poison pill, which in somewhat simple terms releases a premium share of stock for every 2 shares of common stock, or something like that. The premium shares released by the pill are supposed to be significantly higher value than common shares.

- Wisconsin takeover law, which would essentially prohibit AirTran from actually taking posession of any YX assets for I believe three years.

- A agreement with SkyWest to purchase a certain amount of MEH stock upon request. I forget the amount offhand, like $25 million worth or something, but it's in the SEC filings.

- Support of lawmakers. To what extent their influence may have, however, remains to be seen.

[Edited 2007-04-03 05:26:57]

[Edited 2007-04-03 05:28:21]
I'd take the awe of understanding over the awe of ignorance any day.
 
TedEx
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RE: Airtran Raising Midwest Bid Again

Tue Apr 03, 2007 12:45 pm

Found on Midwest's site today... I didn't see it posted here, so I hope you enjoy:

http://www.midwestairlines.com/MAWeb...assets/pdfs/MilwaukeeAirTravel.pdf
 
Mikey711MN
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RE: Airtran Raising Midwest Bid Again

Tue Apr 03, 2007 8:56 pm

If this article is any indicator, investors are liking what they see.

-Mike
I plan on living forever. So far, so good...
 
Mainland
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RE: Airtran Raising Midwest Bid Again

Tue Apr 03, 2007 10:32 pm

Two things to discount/note from that article --

1. I'd discount anything Marisa Thompson from Morningstar has to say. She and Morningstar have practically been in AirTran's back pocket for the entire deal -- she's an AirTran analyst specifically, so there's no doubt she'd be for the deal.

2. While T. Rowe Price is listed in the article as a 5.1% stakeholder, they themselves do not own the shares:

"This information is based on Amendment No. 7 to Schedule 13G filed on February 13, 2007. These securities are owned by various individual and institutional clients to which T. Rowe Price Associates, Inc. ("Price Associates") serves as investment advisor. For purposes of the reporting requirements of the Securities Exchange Act of 1934, Price Associates is deemed to be a beneficial owner of such securities; however, Price Associates expressly disclaims that it is, in fact, the beneficial owner of such securities."

So since the shares are held by individuals, some of the 5.1% that T. Rowe Price holds may already be tendered.

It will be interesting to see what strategy Midwest uses in its reply. One point they harped on before was that the cash portion of the bid was using mostly cash Midwest already had. AirTran was offering $6.625, of which Midwest covered approx. $4.90. (Midwest's cash on hand/shares outstanding) Now that AirTran is offering $9 -- and that formula still leads to about $4.90 cash/share for Midwest -- the argument doesn't hold the same weight. Midwest implied that they wanted more cash in the deal, and they got it.

If management at Midwest continues to be against the deal, I'd expect them to further attack AirTran's lofty projections for MKE as their reason for rejecting the bid.
You don't need a passport to know what state you're in...
 
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knope2001
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RE: Airtran Raising Midwest Bid Again

Tue Apr 03, 2007 11:23 pm

Quoting Mainland (Reply 48):
If management at Midwest continues to be against the deal, I'd expect them to further attack AirTran's lofty projections for MKE as their reason for rejecting the bid.

Indeed....the link a few posts up to MIdwest's comments on AirTran's proposed MKE service is pretty clear. They don't think it has a chance, both because it proposes massive capacity in markets smaller than any AirTran has made work out of their Atlanta hub, and because AirTran's track record has been to not stick with initial promises when things don't initiall go well.

I found it interesting that on the local radio this morning MIdwest's Carol Skornika pointed out that in Wisconsin, public companies are to consider the interests of all stakeholders...not just shareholders...in their actions. In some other states, the sharholders' interests are paramount, but not Wisconsin. The community and employees...as well as shareholders...are all to be given serious consideration if they are to meet their obligations as the governing body of a public company. In case it wasn't already obvious, the Midwest presentation of 3/20 clearly states their position that AirTran's post-merger plans will fail and will ultimately harm the employees and the community.

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