N822ME
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AirTran Allows YX Offer To Expire

Mon Aug 13, 2007 11:02 am

From
http://biz.yahoo.com/prnews/070812/nysu011.html?.v=4

ORLANDO, Fla., Aug. 12 /PRNewswire-FirstCall/ -- AirTran Holdings, Inc. (NYSE: AAI - News) the parent of AirTran Airways, today announced that negotiations with Midwest Air Group, Inc. (Amex: MEH - News) have ended and AirTran's tender offer to purchase Midwest shares has expired.

Interesting Quote:

"The Midwest board has chosen to ignore the overwhelming majority of shareholders' wishes to merge with AirTran, a partner with whom Midwest could have grown and become a national carrier, including our commitment to provide employment protection and more jobs for its employees and more choices for its customers. Instead, the Midwest board has chosen a path that will benefit current senior management by selling out to a private equity firm and a so- called 'passive' investor whose involvement will surely raise antitrust concerns, casting doubt for shareholders on whether a transaction can, in fact, close. Furthermore, private equity investors are laser focused on generating short-term returns and the only way to accomplish that goal is to slash costs by cutting back on service and eliminating jobs. If the Midwest board is successful in selling the company to a private equity investor, the Midwest employees should be concerned about their job security and Midwest's customer service is sure to suffer," stated Leonard.

Does this mean a Northwest coalition?
 
Cubsrule
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RE: AirTran Allows YX Offer To Expire

Mon Aug 13, 2007 11:08 am

Quoting N822ME (Thread starter):
Furthermore, private equity investors are laser focused on generating short-term returns

Isn't that exactly what Octavian and some of the other big proponents of the merger wanted?
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N822ME
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RE: AirTran Allows YX Offer To Expire

Mon Aug 13, 2007 11:10 am

I would gander that whatever other deal was on the table offered a higher return for the shareholders than what AirTran offered... and the verbiage about anti-trust concerns infers an airline, and mirrors almost exactly what Leonard said about a possible Northwest interest two days ago. I'm guessing AirTran got told "No thanks" got pissy and put this out there, always in an effort to get their slant out ahead of any others.

I guess this forces some more information to be forthcoming soon?
 
ChiGB1973
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RE: AirTran Allows YX Offer To Expire

Mon Aug 13, 2007 11:15 am

Quoting N822ME (Thread starter):
Does this mean a Northwest coalition?

NW is not private.

They already have a coalition of sorts with NW via a codeshare.

M
 
N822ME
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RE: AirTran Allows YX Offer To Expire

Mon Aug 13, 2007 11:17 am

Quoting ChiGB1973 (Reply 3):
NW is not private.

They already have a coalition of sorts with NW via a codeshare.

Yes, I'm aware of that.

However, private owners of a company can include publicly traded companies. News on Friday was that Northwest was rumored to consider a "passive" stake in Midwest, putting forward funding with other equity investors to take the company private.
 
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mke717spotter
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RE: AirTran Allows YX Offer To Expire

Mon Aug 13, 2007 11:18 am

Yes!!! Wow so its finally over eh? Guess i can finally breath a sigh of relief that YX is here to stay...So does this mean YX is going private then?
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vulindlela744
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RE: AirTran Allows YX Offer To Expire

Mon Aug 13, 2007 11:19 am

Well, maybe FL can or will make a move on Frontier now. That is the rumor going around at Airtran right now. Who knows what's next.
 
srbmod
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RE: AirTran Allows YX Offer To Expire

Mon Aug 13, 2007 11:21 am

Quoting N822ME (Thread starter):
Does this mean a Northwest coalition?

I smell the stock dropping to under $10 by the closing bell tomorrow, mainly due to a massive sell off by the institutionals who bought in to make some $$$. That's going to seriously affect the portfolios of individual investors.

Then again, the stock drop may be exactly what AirTran wants to have happen. Come in with a lower offer or even start purchasing shares on the open market.

While the tender offer may be history, FL's battle for YX isn't. They aren't going to go gentle into the night like they did with their attempt to purchase most of TZ's MDW assets. They've put too much time and effort in this fight. They do have MEH shareholders on their side, and their slate of candidates on MEH's BOD.

If you think some of the shareholders were angry at Tim at the recent conference call, what could happen next would make that look like a church picnic.

Personally, I think the NW involvement is a red herring on the part of YX to try to get FL to back off. NW just exited CH. 11, you think their shareholders are going to want them to invest or buy out an airline so soon after getting their own house in order?
 
N822ME
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RE: AirTran Allows YX Offer To Expire

Mon Aug 13, 2007 11:28 am

Quoting Srbmod (Reply 7):
I smell the stock dropping to under $10 by the closing bell tomorrow, mainly due to a massive sell off by the institutionals who bought in to make some $$$. That's going to seriously affect the portfolios of individual investors.

Are we reading something different? Joe Leonard says YX is choosing to sell to private equity with a partner that would possibly have anti-trust concerns (read: another airline). And the FL offer is expiring because YX has made up its mind to go with somebody else.

Why would the stock drop if there's another offer at least as good as, if not better than, AirTran's on the table? Or are you assuming that YX's BOD, including the 3 so-called AirTran appointees, bucked their fudiciary responsibility and took a much lower offer?
 
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knope2001
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RE: AirTran Allows YX Offer To Expire

Mon Aug 13, 2007 11:28 am

Ummm...it's not simply a matter that they are letting the AirTran bid expire. The AirTran release says that Midwest is indeed selling....just not to them.

Of course the details are not out yet, and there are several more hours of speculation with precious few added facts. But for all we know the purchaser of Midwestis offering more than AirTran did.

We'll know more tomorrow.
 
Cubsrule
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RE: AirTran Allows YX Offer To Expire

Mon Aug 13, 2007 11:33 am

Quoting Srbmod (Reply 7):
Come in with a lower offer or even start purchasing shares on the open market.

I'm not sure AAI is in a cash position to buy up a lot of MEH shares. Recall that much of the cash in the original tender offer was MEH's cash, not AAI's.

Quoting Srbmod (Reply 7):
They do have MEH shareholders on their side, and their slate of candidates on MEH's BOD.

Depending on what some of the institutional investors do, the level of shareholder support for a takeover may drop dramatically in the near future.
I can't decide whether I miss the tulip or the bowling shoe more
 
SkyyMaster
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RE: AirTran Allows YX Offer To Expire

Mon Aug 13, 2007 11:34 am

Quoting Srbmod (Reply 7):
While the tender offer may be history, FL's battle for YX isn't.

I have to agree. Airtran has been after this too long. Methinks they aren't finished yet.
 
MKENut
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RE: AirTran Allows YX Offer To Expire

Mon Aug 13, 2007 11:36 am

FOX 6 Milwaukee has indicated Midwest will have a news conference soon.
 
sideflare75
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RE: AirTran Allows YX Offer To Expire

Mon Aug 13, 2007 11:41 am

Quoting SkyyMaster (Reply 11):
I have to agree. Airtran has been after this too long. Methinks they aren't finished yet.

The news release says they are selling to private equity, just not Airtran. Midwest is still being sold.
 
VictorKilo
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RE: AirTran Allows YX Offer To Expire

Mon Aug 13, 2007 11:45 am

Quoting N822ME (Thread starter):
Furthermore, private equity investors are laser focused on generating short-term returns and the only way to accomplish that goal is to slash costs by cutting back on service and eliminating jobs. If the Midwest board is successful in selling the company to a private equity investor, the Midwest employees should be concerned about their job security and Midwest's customer service is sure to suffer," stated Leonard.

Translation:

YX, if you sell to a private equity investor, we'll sue you for not considering "other stakeholders" per Wisconsin law.

[Edited 2007-08-13 04:46:18]
 
billreid
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RE: AirTran Allows YX Offer To Expire

Mon Aug 13, 2007 11:50 am

What is interesting here is this is the worst case for YX employees.

If NW invests, YX and MKE become nothing more than a RJ base with the B-717's replacing the DC-9s in the NW system.
I guess this might be a way to hire some pilots for Americas best airline at cancelling flights.

Given the severe jitter on wall street and a lack of capital in the market, I would suggest that $10.00 per share is HIGHLY optomistic. Given that other far stronger companies lost 8-10% last week on the market problems we should realstically expect the YX shares to drop closer to 6.00 - 7.00 per share in the next ten days.

The end result will be that YX will be positioned for a very soft takeover.
YX is dead regardless how we look at.

There is no good scenario for the YX employees here unless FL renews the offer at a lower bid.
Employees need to make sure the resumes are updated.
Some people don't get it. Business is about making MONEY!
 
bnatraveler
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RE: AirTran Allows YX Offer To Expire

Mon Aug 13, 2007 11:54 am

 
msnyx
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RE: AirTran Allows YX Offer To Expire

Mon Aug 13, 2007 11:54 am

If I rise on the wings of the dawn, if I settle on the far side of the sea, even there Your hand will guide me
 
Cubsrule
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RE: AirTran Allows YX Offer To Expire

Mon Aug 13, 2007 11:54 am

Quoting VictorKilo (Reply 14):
YX, if you sell to a private equity investor, we'll sue you for not considering "other stakeholders" per Wisconsin law.

AAI has no standing to sue. They're not a stakeholder.

Quoting BillReid (Reply 15):
There is no good scenario for the YX employees here unless FL renews the offer at a lower bid.

For all we know, the mystery private equity group will take the company private but change nothing. How would that harm employees? The fact that Joe says something doesn't make it so.

Quoting BillReid (Reply 15):
If NW invests, YX and MKE become nothing more than a RJ base with the B-717's replacing the DC-9s in the NW system.

If NW money is involved (which we don't know), perhaps the goal was exclusively to keep FL out of MKE. NW seems content to coexist with YX now; after all, they could have dragged the last MKE focus city attempt out much longer. Many NW customers in MKE are also loyal YX fliers (and vice-versa). NW could very well do nothing but make the partnership more intimate.
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CitrusCritter
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RE: AirTran Allows YX Offer To Expire

Mon Aug 13, 2007 11:55 am

Personally I'm very pleased with this outcome. I felt YX was overvalued by FL, and if it gets dismantled by NW over the long term, then that's what it deserves. Here's to hoping FL moves strong into MKE as well as into STL and MEM! Come on MEM, let's take it to Big Red!  Wink
 
sideflare75
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RE: AirTran Allows YX Offer To Expire

Mon Aug 13, 2007 11:56 am

Quoting BillReid (Reply 15):
What is interesting here is this is the worst case for YX employees.

If NW invests, YX and MKE become nothing more than a RJ base with the B-717's replacing the DC-9s in the NW system.
I guess this might be a way to hire some pilots for Americas best airline at cancelling flights.

Given the severe jitter on wall street and a lack of capital in the market, I would suggest that $10.00 per share is HIGHLY optomistic. Given that other far stronger companies lost 8-10% last week on the market problems we should realstically expect the YX shares to drop closer to 6.00 - 7.00 per share in the next ten days.

The end result will be that YX will be positioned for a very soft takeover.
YX is dead regardless how we look at.

There is no good scenario for the YX employees here unless FL renews the offer at a lower bid.
Employees need to make sure the resumes are updated.

I don't agree. I think it is great. They turned down $15.75/share so the other offer must have been more. It still has to pass a shareholder vote so this is not over yet but if they were truly in it to make money then all the shareholders will say yes.

And as I type this I got this in a e-mail:
"The Midwest Air Group Board of Directors today said that it has unanimously
determined to pursue an all-cash offer from TPG Capital, L.P. on behalf of
an affiliate of TPG and one or more partners to acquire all of the
outstanding shares of Midwest for $16.00 per share."
 
N822ME
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RE: AirTran Allows YX Offer To Expire

Mon Aug 13, 2007 11:58 am

So $16 per share, all cash.... so how is that worse off for the shareholder, and make them sell, than the AirTran offer?
 
msnyx
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RE: AirTran Allows YX Offer To Expire

Mon Aug 13, 2007 12:03 pm

Quoting Sideflare75 (Reply 21):
"The Midwest Air Group Board of Directors today said that it has unanimously
determined to pursue an all-cash offer from TPG Capital, L.P. on behalf of
an affiliate of TPG and one or more partners to acquire all of the
outstanding shares of Midwest for $16.00 per share."

Here's the link:
http://www.midwestairlines.com/MAWeb...iles/programNewsDisplay.aspx?id=26
If I rise on the wings of the dawn, if I settle on the far side of the sea, even there Your hand will guide me
 
Cubsrule
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RE: AirTran Allows YX Offer To Expire

Mon Aug 13, 2007 12:05 pm

Here's the full press release...

Milwaukee, Wisconsin, August 12, 2007 – The Board of Directors of Midwest Air Group (AMEX: MEH), parent company of Midwest Airlines, today said that it has unanimously determined to pursue an all-cash offer from TPG Capital, L.P. on behalf of an affiliate of TPG and one or more partners to acquire all of the outstanding shares of Midwest for $16.00 per share.

The board took its action after receiving a letter from AirTran Holdings, Inc. (NYSE: AAI) in which AirTran stated it was making its best and final offer to acquire all of the outstanding shares of Midwest pursuant to a one-step merger for consideration consisting of cash and stock at $15.75 per share, valued at Friday's closing price of AirTran's common stock. In reaching that determination, the board concluded that the TPG offer presented greater value and certainty for Midwest shareholders than the AirTran offer.

Under the terms of the offer from TPG, the private equity investor indicated that its acquisition "would permit the Company to continue its rich legacy as a leading provider of customer oriented quality air service."

Midwest and TPG expect to execute a definitive merger agreement no later than August 15, 2007.

The offer from TPG is set forth in the following letter that was received by the Midwest board on August 12:

Board of Directors
Midwest Air Group, Inc.
6744 South Howell Avenue
Oak Creek, Wisconsin 53154

Ladies and Gentlemen:

TPG Capital, L.P. ("TPG") is pleased to submit the following indication of interest for an acquisition by TPG of Midwest Air Group, Inc., a Wisconsin corporation (the "Company"), for $16.00 in cash for each share of the Company's common stock.

We believe that our proposal offers a compelling opportunity for your shareholders and is superior to the proposal that has been submitted by AirTran Holdings, Inc. ("AirTran"). The proposed purchase price is an all cash offer, which, in light of the recent volatility in the United States equity markets, represents a more certain value for your shareholders than the large stock component of AirTran's proposal. In addition to providing more certain value, an acquisition by TPG would permit the Company to continue its rich legacy as a leading provider of customer oriented quality air service. Our acquisition would provide for greater stability and prospects for all of the Company's important constituencies including customers, employees and the greater Milwaukee and Kansas City metropolitan areas. We have been very impressed with your management team and are confident in its ability to maintain the Company's reputation of excellent service, while at the same time running a profitable airline.

We believe that our experience in this sector, together with our track record for maintaining stable, long term investments, argue strongly in favor of an acquisition by TPG. We are one of the largest private equity investors in the world and the most experienced private equity investor in the global airline sector. Investments carried out by us in and related to the airline industry include, among others, Continental Airlines, America West Airlines, Ryanair, Hotwire and Sabre. We are proud of the record that we and the management teams have accomplished in creating value in these companies.

Our transaction would be financed through contributions from TPG Partners V, L.P., a fund we manage with $15.3 billion of committed equity capital, and one or more partners, which contributions would be fully committed at the time of signing. The consummation of the transaction would not be subject to a financing condition, and we do not anticipate any issues in obtaining antitrust clearance or any other regulatory approvals, so we anticipate consummation would be subject only to customary conditions.

We are fully prepared to complete confirmatory legal and accounting due diligence and the concurrent negotiation of definitive documents on an expedited basis in order to execute a transaction by August 15, 2007.

This letter is an expression of interest only and any binding agreement would arise only upon execution of definitive agreements.

We are very excited about the prospects for this transaction, and we look forward to having the opportunity to work with you to finalize a transaction that we believe will benefit your shareholders and other constituencies. We are prepared to meet with you or your representatives at any time to discuss all aspects of our proposal.

Very truly yours,

TPG Capital, L.P.
By:
Name: Richard P. Schifter
Title: Partner

Midwest Airlines features jet service throughout the United States, including Milwaukee's most daily nonstop flights and best schedule to major destinations. Catering to business travelers and discerning leisure travelers, the airline earned its reputation as "The best care in the air" by providing passengers with impeccable service and onboard amenities at competitive fares. Both Skyway Airlines, Inc. - a wholly owned subsidiary of Midwest Airlines - and SkyWest Airlines, Inc. operate as Midwest Connect and offer service to and connections through Midwest Airlines' hubs. Together, the airlines offer service to 53 cities. More information is available at http://www.midwestairlines.com.

This news release contains forward-looking statements that may state the company's or management's intentions, hopes, beliefs, expectations or predictions for the future. Words such as "planned," "projecting," "expect," "should," "anticipate," "believe," "estimate," "goal," "plan," "objective" or similar words are intended to identify forward-looking statements. There can be no assurance that the company will enter into a merger agreement with TPG. Factors that may cause events contemplated by the company's forward-looking statements not to occur include, but are not limited to, the risk factors described in "Item 1A. Risk Factors" in the company's "Annual Report on Form 10-K" for the year ended December 31, 2006.

Important Information
Midwest filed a Schedule 14D-9 with the Securities and Exchange Commission on January 25, 2007 and subsequent amendments which set forth the reasons for the Midwest board's recommendation with respect to the unsolicited exchange offer by AirTran Holdings, Inc. and related information.

The links below contain information pertinent to this situation.
This site is regularly updated as events change and contains publicly available information.
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CitrusCritter
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RE: AirTran Allows YX Offer To Expire

Mon Aug 13, 2007 12:06 pm

I think the ultimate lose 10 years down the road here will be YX employees and MKE. The Midwest Express legacy was toast whether it was AirTran or Northwest, but at least AirTran was committed to building MKE further, thus ensuring jobs and n/s flights at low fares. Northwest is committed to neither, especially since they will now quite probably have pricing power at MKE. MKE may well become the new CVG.
 
N822ME
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RE: AirTran Allows YX Offer To Expire

Mon Aug 13, 2007 12:08 pm

Quoting CitrusCritter (Reply 25):
I think the ultimate lose 10 years down the road here will be YX employees and MKE. The Midwest Express legacy was toast whether it was AirTran or Northwest, but at least AirTran was committed to building MKE further, thus ensuring jobs and n/s flights at low fares. Northwest is committed to neither, especially since they will now quite probably have pricing power at MKE. MKE may well become the new CVG.

It appears Northwest is not the controlling interest here, if they are involved (though likely they put up some money). Could also go the way of Midwest remaining an independent airline, with investment to allow it to grow equally as strong on its own.
 
mrstl
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RE: AirTran Allows YX Offer To Expire

Mon Aug 13, 2007 12:08 pm

Wild thought, maybe the TPG will now make a hostile takeover bid for FL, seems like YX and FL are still a great match and TPG has the money to do it.
 
sideflare75
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RE: AirTran Allows YX Offer To Expire

Mon Aug 13, 2007 12:10 pm

I find it interesting that the board voted unanimously. What happened to Joe's three insiders???

So in the end this was just a big waste of money for AirTran.
 
airbusaddict
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RE: AirTran Allows YX Offer To Expire

Mon Aug 13, 2007 12:11 pm

So is this a good thing or a bad thing?? Im not getting it.
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N822ME
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RE: AirTran Allows YX Offer To Expire

Mon Aug 13, 2007 12:12 pm

According to the news right now, Midwest brand will remain, and it will be operated as an independent company.
 
Cubsrule
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RE: AirTran Allows YX Offer To Expire

Mon Aug 13, 2007 12:13 pm

Quoting CitrusCritter (Reply 25):
but at least AirTran was committed to building MKE further, thus ensuring jobs and n/s flights at low fares.

Committed to MKE like they committed to DFW and MDW?
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flydl2atl
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RE: AirTran Allows YX Offer To Expire

Mon Aug 13, 2007 12:14 pm

The bad news is if the mgmt is unable to generate the profits that TPG expects. I don't think there's much to stop them from selling the company piecemeal if they so chose.
 
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JBo
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RE: AirTran Allows YX Offer To Expire

Mon Aug 13, 2007 12:14 pm

Good move.

As others have stated, if the shareholders are, indeed, in it for the money, this offer should be supported.

With proper investment and support, Midwest should be able to expand and grow into once again being a strong, competitive airline.
I'd take the awe of understanding over the awe of ignorance any day.
 
airbusaddict
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RE: AirTran Allows YX Offer To Expire

Mon Aug 13, 2007 12:15 pm

So will Midwest still be the same Midwest, only owned by a different company?
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mke717spotter
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RE: AirTran Allows YX Offer To Expire

Mon Aug 13, 2007 12:15 pm

So...how long now until FL announces more service from MKE?  Yeah sure
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CitrusCritter
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RE: AirTran Allows YX Offer To Expire

Mon Aug 13, 2007 12:16 pm

Quoting Sideflare75 (Reply 28):
What happened to Joe's three insiders???

They followed their fiduciary duties and accepted the cash offer.

Quoting N822ME (Reply 30):
According to the news right now, Midwest brand will remain, and it will be operated as an independent company.

While day to day operations may remain independent, it is yet to be seen how much sway NW will have over long-term planning and strategy, not to mention network integration. Just because the YX brand will remain does not mean that we will not see TPG and its partners prodding them to move closer to NW, who we believe is a partner in this deal.
 
Mikey711MN
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RE: AirTran Allows YX Offer To Expire

Mon Aug 13, 2007 12:20 pm

Here is the Milwaukee Journal-Sentinel article about the deal.
I plan on living forever. So far, so good...
 
vulindlela744
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RE: AirTran Allows YX Offer To Expire

Mon Aug 13, 2007 12:22 pm

Does anyone think that FL will try and acquire Frontier? I work for Airtran and that is a big rumor around our company right now. Any comment?
 
CitrusCritter
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RE: AirTran Allows YX Offer To Expire

Mon Aug 13, 2007 12:23 pm

Quoting Cubsrule (Reply 1):
Isn't that exactly what Octavian and some of the other big proponents of the merger wanted?

Indeed, but they weren't buying YX. Octavian was just trying to make a quick buck, but AirTran was acquiring YX. In this case, it is a company similar to Octavian that will actually own YX. Not nearly the same thing.
 
airbusaddict
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RE: AirTran Allows YX Offer To Expire

Mon Aug 13, 2007 12:28 pm

I STILL DONT GET WHAT IS HAPPENING. The media is kind of making it complicated to understand. Will the services change, will the airline not be operated by the CEO, will it stay midwest and add more markets like they would and keep everything it would be but just with new managment? What is going on!
Finally F9! FSD-DEN 7-4-2011
 
CitrusCritter
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RE: AirTran Allows YX Offer To Expire

Mon Aug 13, 2007 12:28 pm

Quoting Vulindlela744 (Reply 39):

I don't know why they'd want in at DEN, which is definitely one of the most competitive markets with UA and WN. The regional opportunities to expand Lynx to the SE would be amazing in my mind, but there's a lack of fleet commonality. FRNT would appear to have enough cash on hand to float the merger -- market cap is presently 197mn with 202mn in cash and cash equivalents on hand. I imagine AAI stock would make up any premium on the deal. So it's possible, but I really don't see why you'd want in on DEN, not to mention that FL's bread and butter is not transcons like F9, but rather short hops in the eastern part of the country. What would be interesting would be to see which name would survive...I tend to think the Frontier "whole 'nother animal" marketing would be very effective nationally and might allow FL to re-target the business market in a number of cities.
 
N822ME
Topic Author
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RE: AirTran Allows YX Offer To Expire

Mon Aug 13, 2007 12:29 pm

Curious how AirTran spokespeople are saying Midwest has done a disservice to its shareholders. How so? $16 a share, cash, versus $15.75 a share that includes partial cash, partial AirTran stock (which would likely decrease in value as Octavian et al dump it after a deal so they get their cash).
 
CitrusCritter
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RE: AirTran Allows YX Offer To Expire

Mon Aug 13, 2007 12:30 pm

Quoting Airbusaddict (Reply 41):

Hard to say at this point. Essentially all we know is that a major investment firm will own YX and that YX will remain as the airline's name. The degree to which YX will be allowed to continue its operations and how those operations might change are yet to be seen. Beyond that, no significant details have come out besides the $16 all cash offer.
 
Cubsrule
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RE: AirTran Allows YX Offer To Expire

Mon Aug 13, 2007 12:31 pm

Quoting CitrusCritter (Reply 40):
Not nearly the same thing.

Certainly not, but it's ironic that AAI would make that critique of private equity investors when it was the people who wanted to make a quick buck that were driving AAI's attempts to take over MEH.

After all, there are other, better (IMO), critiques possible, such as that any sort of private equity deal, with or without NW, will result in a higher-fare environment in MKE which, at least according to Leonard, is bad for consumers and employees.
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sideflare75
Posts: 417
Joined: Wed May 04, 2005 2:30 pm

RE: AirTran Allows YX Offer To Expire

Mon Aug 13, 2007 12:33 pm

Quoting Airbusaddict (Reply 41):
I STILL DONT GET WHAT IS HAPPENING. The media is kind of making it complicated to understand. Will the services change, will the airline not be operated by the CEO, will it stay midwest and add more markets like they would and keep everything it would be but just with new managment? What is going on!

As it sounds right now Midwest is staying Midwest. Probably with the same management team, minus Carol who already said she is retiring.
 
MUWarriors
Posts: 192
Joined: Wed May 04, 2005 12:11 pm

RE: AirTran Allows YX Offer To Expire

Mon Aug 13, 2007 12:33 pm

Quoting Airbusaddict (Reply 41):
I STILL DONT GET WHAT IS HAPPENING. The media is kind of making it complicated to understand. Will the services change, will the airline not be operated by the CEO, will it stay midwest and add more markets like they would and keep everything it would be but just with new managment? What is going on!

Basically they are being bought by a private company, with other investors (probably Northwest being one of them). This company is currently saying that they are keeping on YX's current senior management, and says they see the positives of what YX is trying to do, so for right now there would not appear to be any big changes, but you never know what the future will bring...
 
concentriq
Posts: 283
Joined: Mon Jan 24, 2005 11:37 am

RE: AirTran Allows YX Offer To Expire

Mon Aug 13, 2007 12:36 pm

I say its bad news: TPG, which appears to have no connection to MKE, or WI region will sell YX the minute things become tight. Or: it will cut down on services to make quick buck. Read: goodbye extra wide seats, cookies and Alterra coffee. Sad sad. Went from "homegrown" airine to just another people mover owned by god knows whom.. I guess you really have to be from MKE to fully appreciate what YX meant...

[Edited 2007-08-13 05:37:36]
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N822ME
Topic Author
Posts: 83
Joined: Mon Jul 02, 2007 3:31 am

RE: AirTran Allows YX Offer To Expire

Mon Aug 13, 2007 12:42 pm

Appears Northwest is involved:
Northwest Airlines Joins TPG Bid for Midwest Air Group
http://biz.yahoo.com/bw/070812/20070812005073.html?.v=1&printer=1

The relevant bit:

Quote:
NWA, which is providing financing to facilitate the transaction, will not participate in the management or control of Midwest should TPG acquire Midwest. The previously announced codeshare agreement between NWA and Midwest Airlines will remain in place and the two airlines will explore cost reduction activities such as joint fuel purchasing.

Northwest has briefed its union leadership on the transaction. The investment contemplated is consistent with all of NWA's union obligations.
 
CitrusCritter
Posts: 770
Joined: Wed May 30, 2007 10:36 am

RE: AirTran Allows YX Offer To Expire

Mon Aug 13, 2007 12:44 pm

Quoting N822ME (Reply 50):

Amazing to me how an airline that just came out of BK and that can't even fly its normal schedule without all sorts of cancellations can afford to take part in this sort of venture.
 
User avatar
JBo
Posts: 1610
Joined: Wed Jan 05, 2005 7:23 am

RE: AirTran Allows YX Offer To Expire

Mon Aug 13, 2007 12:47 pm

Quoting Concentriq (Reply 49):
Or: it will cut down on services to make quick buck. Read: goodbye extra wide seats, cookies and Alterra coffee. Sad sad. Went from "homegrown" airine to just another people mover owned by god knows whom.. I guess you really have to be from MKE to fully appreciate what YX meant...

Isn't that exactly the same thing that would have happened if the AirTran merger went through?
I'd take the awe of understanding over the awe of ignorance any day.

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