Boeing7E7
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RE: FL Vs YX..It Aint Over Yet

Wed Aug 15, 2007 7:45 am

Aweful lot of interest in a supposedly flawed airline.
 
N822ME
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RE: FL Vs YX..It Aint Over Yet

Wed Aug 15, 2007 7:49 am

Quoting Sacamojus (Reply 32):
There is no reason why the BOD would not take the highest bid. Their job doesn't concern YX employees, management, nor customers; they are their for the shareholders benefit and should only think about what is in the best interest for the shareholders. I would love to see who wins the bidding war.

It's likely anybody who would be holding onto FL stock after a deal would see their value decrease, as the others who just want their money sell FL stock.

Quoting ORD2PHL (Reply 25):
Why the ME fans and general employees think that the private equity road is good for them is beyond me. TPG wants one thing out of this deal, they don't care about the happy little Midwestern airline you have become - they will cut costs, and the fat to drive efficiencies into your business that couldn't be realized with present management's thinking. Once that is done and they feel they can turn around and sell the company to someone else they will and move on to the next project. At least the Airtran proposal creates jobs, adds service and shows promising growth plans.

Given that employees of CO and HP got a much stronger, more stable and viable carrier out of their company's dealings with TPG, I don't see what is so bad for the employees of YX. TPG has a track record of less "quick buck" transactions than many other equity firms. They have stated their intent is to grow the company and invest what is needed to do so. It's no more volatile to YX employees than a FL deal, where if MKE doesn't work out, their track record is to jump from markets the second it doesn't work.
 
N908AW
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RE: FL Vs YX..It Aint Over Yet

Wed Aug 15, 2007 7:56 am

Quoting Srbmod (Reply 18):
Offer comes out to $16.25/share, trumping the TPG/NW offer. Looks like someone is going to get into a minor bidding war.

Pardon my ignorance, but

A sale of Midwest Air could be imminent. AirTran's tender offer expires at midnight Friday night, and Chairman and Chief Executive Officer Joe Leonard has vowed not to renew it when trading resumes Monday morning. Leonard wants a sale agreement by then.

Joe Leonard is a dirty filthy rotten stinking liar.

Quoting CitrusCritter (Reply 35):
Making a "final offer" then upping it when you get outbid is purely business; it has nothing to do with being "honest."

It is what it is...You are correct that pure business has nothing to do with honesty. But...at least Doug Parker had the humanity to give up on DL when they said no. Joe Leonard is being silly. But, I'll give you that, he's also being business-like.

Quoting JBo (Reply 46):
For the sake of all the small YX/Skyway cities out there, let's hope YX is able to form a deal that will keep service alive for years to come.

Definitely.
'Cause you're on ATA again, and on ATA, you're on vacation!
 
travatl
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RE: FL Vs YX..It Aint Over Yet

Wed Aug 15, 2007 7:59 am

Quoting N908AW (Reply 52):
Joe Leonard is a dirty filthy rotten stinking liar.

Did somebody not get their nap this afternoon? Or were just upset because you had to put down your sippy cup when you typed this?
1 Interview. 24 years. 3 Airlines.
 
srbmod
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RE: FL Vs YX..It Aint Over Yet

Wed Aug 15, 2007 8:14 am

Quoting N908AW (Reply 52):

Joe Leonard is a dirty filthy rotten stinking liar.


No he isn't. Nobody could have predicted the shareholder response to the deal to take YX private. If none of the institutionals made a peep that was negative towards the deal, FL probably wouldn't have made this new offer. More than likely, based on the info they had, it probably was assumed that the higher priced offer would be approved by the shareholders since the BOD voted unanimously for the deal.
 
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TVNWZ
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RE: FL Vs YX..It Aint Over Yet

Wed Aug 15, 2007 8:18 am

Quoting Srbmod (Reply 54):
No he isn't. Nobody could have predicted the shareholder response to the deal to take YX private

Actually, you could predict the hedge funds who got in late screeming about a cash offer of $16. Taxes just ate their profit. They have no concern for YX, FL or anyone else.
 
N822ME
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RE: FL Vs YX..It Aint Over Yet

Wed Aug 15, 2007 8:36 am

If this were the same story, but reversed, the hedge funds would behave in the same manner. It's what they do.
 
concentriq
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RE: FL Vs YX..It Aint Over Yet

Wed Aug 15, 2007 8:40 am

Whatever happens, I dont believe it will be good for YX. sucks. I could only wish there werent any changes to YX at all: no TPG, FL, or NW..
Mobilis In Mobili
 
quickmover
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RE: FL Vs YX..It Aint Over Yet

Wed Aug 15, 2007 8:46 am

Quoting Mke717spotter (Reply 44):
I just think that TPG/NW has more gas left in the tank than FL does as far as this merger goes.

They're not done. That's for sure.
 
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mke717spotter
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RE: FL Vs YX..It Aint Over Yet

Wed Aug 15, 2007 8:51 am

Quoting Quickmover (Reply 58):

You talking about FL or NW/TPG?
Will you watch the Cleveland Browns and the Detroit Lions on Sunday? Only if coach Eric Mangini resigned after a loss.
 
Indy
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RE: FL Vs YX..It Aint Over Yet

Wed Aug 15, 2007 8:59 am

YX board voted and approved the $16.00. Its too late for FL to try and come up with $16.25. They should have done that a few days ago. Sorry about your luck FL but you don't get to play that game.
Indy = Indianapolis and not Independence Air
 
travatl
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RE: FL Vs YX..It Aint Over Yet

Wed Aug 15, 2007 9:03 am

Quoting Indy (Reply 60):
YX board voted and approved the $16.00. Its too late for FL to try and come up with $16.25. They should have done that a few days ago. Sorry about your luck FL but you don't get to play that game.

Uh looks like they do....

http://biz.yahoo.com/prnews/070814/aqtu173.html?.v=14

Midwest Air Group Board of Directors Receives Revised Offer From AirTran
Tuesday August 14, 5:47 pm ET


MILWAUKEE, Aug. 14 /PRNewswire-FirstCall/ -- The Board of Directors of Midwest Air Group (Amex: MEH - News), parent company of Midwest Airlines, today said that it has received a letter from AirTran Holdings, Inc. (NYSE: AAI - News) indicating that AirTran was increasing its offer to acquire all of the outstanding shares of Midwest.

The board will take AirTran's revised offer under consideration.
1 Interview. 24 years. 3 Airlines.
 
Mainland
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RE: FL Vs YX..It Aint Over Yet

Wed Aug 15, 2007 9:14 am

Quoting Indy (Reply 60):
YX board voted and approved the $16.00. Its too late for FL to try and come up with $16.25.

While the board may have voted, no agreement has yet been signed. Besides, competing bids happen all the time, and each time the target company must take the bid under consideration. The challenge now will be for Midwest, if they follow the past and continue to turn AirTran down, to clearly state why the higher bid should not be taken. I'd expect more of the same rationale from Midwest, followed with how good the all cash offer is since it is more of a "sure thing."
You don't need a passport to know what state you're in...
 
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Tugger
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RE: FL Vs YX..It Aint Over Yet

Wed Aug 15, 2007 9:15 am

Quoting Quickmover (Reply 58):
They're not done. That's for sure.



Quoting Mke717spotter (Reply 59):
You talking about FL or NW/TPG?

I would say that strategically (as in what best for their business) Airtran wants to either acquire Midwest with this offer or push the price up as high as they can to push as much cash as possible out of the investors pockets. You don't want to leave them with much to reinvest back into YX and it will make them very tough with what they (TPG/NW) will require YX to return.

Tug
I don’t know that I am unafraid to be myself, but it is hard to be somebody else. - W. Shatner
Productivity isn’t about getting more things done, rather it’s about getting the right things done, while doing less. - M. Oshin
 
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JBo
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RE: FL Vs YX..It Aint Over Yet

Wed Aug 15, 2007 9:17 am

Quoting Travatl (Reply 61):

Uh looks like they do....

I'm sure the board has an obligation to consider the offer ... but since they already accepted TPG's offer, they don't necessarily have to accept AirTran's. I would suspect TPG to raise the offer to $16.50 in the 11th hour Wednesday when the agreement is (was) supposed to be reached between Midwest and TPG.
I'd take the awe of understanding over the awe of ignorance any day.
 
MCOflyer
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RE: FL Vs YX..It Aint Over Yet

Wed Aug 15, 2007 9:22 am

Quoting Srbmod (Reply 54):

No he isn't.

Thank you. Joe has gotten FL profitable and see he could do a good takeover of YX. I believe this is in their best interest. Also, I believe he would keep skyway if the cities they serve are profitable.

Hunter
Never be afraid to stand up for who you are.
 
quickmover
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RE: FL Vs YX..It Aint Over Yet

Wed Aug 15, 2007 9:28 am

Quoting Mke717spotter (Reply 59):
You talking about FL or NW/TPG?

Both
 
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JBo
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RE: FL Vs YX..It Aint Over Yet

Wed Aug 15, 2007 9:35 am

Quoting MCOflyer (Reply 65):
Thank you. Joe has gotten FL profitable and see he could do a good takeover of YX. I believe this is in their best interest. Also, I believe he would keep skyway if the cities they serve are profitable.

Which is doubtful because, as others have presented, the higher seat-mile costs of regional aircraft do not get along well with FL's low fare model.
I'd take the awe of understanding over the awe of ignorance any day.
 
Indy
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RE: FL Vs YX..It Aint Over Yet

Wed Aug 15, 2007 9:44 am

No YX doesn't have to do anything with the FL offer since they already voted to accept the other offer. They may choose to look at the FL offer but it would be voluntary. In fact it could get them into legal trouble with the other company because they already accepted the $16 offer. What do you think FL would be saying had the YX board voted on and approved a $15.75 (or whatever the exact number was) offer from FL just to have someone else come in and say we'll offer $16. It would have been too bad so sad. You should have made your best offer sooner. Just looks like sour grapes from FL.
Indy = Indianapolis and not Independence Air
 
DCA-ROCguy
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RE: FL Vs YX..It Aint Over Yet

Wed Aug 15, 2007 9:54 am

Aweful lot of interest in a supposedly flawed airline.

Northwest doesn't want an LCC getting a ready-made hub in the Upper Midwest, smack between its two main hubs. (Like you I don't think AirTran can do what they claim at MKE, but Northwest clearly anticipates a huge competitive cost if FL wins, otherwise they wouldn't team with a private equity firm to make an overpriced bid for YX.)

AirTran wants a second hub badly, and they see centrally-located MKE and a nice little gaggle of their no-longer-in-production main aircraft sitting there. Don't think the fact that YX flies 717s has nothing to do with this, even if it isn't just a "717 grab" to serve other markets. Commonality counts, especially for an LCC.

At this point, whoever wins is overpaying.

Jim
Need a new airline paint scheme? Better call Saul! (Bass that is)
 
SeeTheWorld
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RE: FL Vs YX..It Aint Over Yet

Wed Aug 15, 2007 10:02 am

Quoting Indy (Reply 68):
No YX doesn't have to do anything with the FL offer since they already voted to accept the other offer. They may choose to look at the FL offer but it would be voluntary. In fact it could get them into legal trouble with the other company because they already accepted the $16 offer. What do you think FL would be saying had the YX board voted on and approved a $15.75 (or whatever the exact number was) offer from FL just to have someone else come in and say we'll offer $16. It would have been too bad so sad. You should have made your best offer sooner. Just looks like sour grapes from FL.

Do you even know what you're talking about?
 
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mke717spotter
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RE: FL Vs YX..It Aint Over Yet

Wed Aug 15, 2007 10:05 am

Here's some info...

"Pequot is Midwest Air's only institutional investor that has raised concerns about TPG Capital's bid, Carol Skornicka, senior vice president of corporate affairs said this morning.

"We've been hearing from other hedge funds who are saying, 'Congratulations, this is great,'" she said.

Skornicka said the issues raised by Pequot were considered by Midwest Air's board before it voted to pursue a sale agreement with TPG Capital. The board decided the TPG Capital's bid provided more certainty and value than AirTran's offer, citing the fact that it's all cash.

Skornicka also said antitrust concerns raised by Leonard are not expected to prevent a sale to TPG Capital from gaining approval from the U.S. Department of Justice, which routinely reviews airline mergers."

I just don't see how one shareholders disapproval is going to stop this deal from happening. NW/TPG will most likely raise the bid and then it should finally be a done deal.
Will you watch the Cleveland Browns and the Detroit Lions on Sunday? Only if coach Eric Mangini resigned after a loss.
 
SeeTheWorld
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RE: FL Vs YX..It Aint Over Yet

Wed Aug 15, 2007 10:15 am

I suspect AirTran decided to make this more expensive for NW - at least 50 cents per share.
 
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Tugger
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RE: FL Vs YX..It Aint Over Yet

Wed Aug 15, 2007 10:15 am

Quoting SeeTheWorld (Reply 70):
Do you even know what you're talking about?

I was wondering the same. That reply and:

Quoting Indy (Reply 60):
YX board voted and approved the $16.00. Its too late for FL to try and come up with $16.25. They should have done that a few days ago. Sorry about your luck FL but you don't get to play that game.

show only a silly comment ability.
Several other posts here seem to express the same simplistic thought. This is high stakes business and just like all M&A's it ain't over till the signatures are on the dotted line and the money's in the bank. The deal isn't done, the door isn't closed. At the very least the Board has to explain why a lower all cash offer, that others here have explained will cause the shareholders to incur tax penalties is the superior offer.

I'll be interested to see how they do that. Of course TPG/NW could just come up with more money but as I said earlier that will ultimately make it harder on Midwest.

Tug
I don’t know that I am unafraid to be myself, but it is hard to be somebody else. - W. Shatner
Productivity isn’t about getting more things done, rather it’s about getting the right things done, while doing less. - M. Oshin
 
atlaaron
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RE: FL Vs YX..It Aint Over Yet

Wed Aug 15, 2007 10:20 am

Quoting Indy (Reply 68):
In fact it could get them into legal trouble with the other company because they already accepted the $16 offer.

Not really legal trouble. It's usually written that if the offer has been accepted and you choose to back out, there is a fee you must pay. I don't really consider that legal trouble. Most of the time though the acquiring company offering the higher offer includes the offer to pay the termination fee for the company being acquired.
 
MSYtristar
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RE: FL Vs YX..It Aint Over Yet

Wed Aug 15, 2007 10:22 am

Quoting DCA-ROCguy (Reply 69):
At this point, whoever wins is overpaying

Much like when Eastern and Pan Am got into a bidding war for National. In the end Pan Am paid wayyyy too much, and it cost them big time. They lost something like a billion dollars in the years following the merger.
 
Crewchief
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RE: FL Vs YX..It Aint Over Yet

Wed Aug 15, 2007 10:56 am

Quoting Tugger (Reply 73):
The deal isn't done, the door isn't closed. At the very least the Board has to explain why a lower all cash offer, that others here have explained will cause the shareholders to incur tax penalties is the superior offer.

Let me take a shot at it. Stocks go up, and stocks go down. Cash doesn't. There is a risk that AAI stock will be worth less in the future. Is that risk worth a $.25 premium to cash? Or should the risk be priced higher?

Consider the possibility of a downturn in the economy (have you been paying attention to the markets?), the ability of AAI to maintain loyalty of YX travelers (some will fly AAI, some will refuse, does anyone know the split?), the possibility that other airlines will compete in MKE, and the possibility that MCI traffic will go to WN. And the risks go on and on.

Personally, I'd be surprised if the MEH Board thinks a $25/share premium is adequate compensation for the increased risk.
 
SeeTheWorld
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RE: FL Vs YX..It Aint Over Yet

Wed Aug 15, 2007 11:05 am

Quoting MSYtristar (Reply 75):
Much like when Eastern and Pan Am got into a bidding war for National. In the end Pan Am paid wayyyy too much, and it cost them big time. They lost something like a billion dollars in the years following the merger.

This is hardly comparable. AirTran may acquire YX for more than they should, but if they get them, the synergistic long-term benefits are significant and hard to ignore.
 
SeeTheWorld
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RE: FL Vs YX..It Aint Over Yet

Wed Aug 15, 2007 11:09 am

Quoting Crewchief (Reply 76):
There is a risk that AAI stock will be worth less in the future.

There is also the possibility that this extremely well-run company's stock will rise in the future thus robbing the current shareholders of greater earnings if the all-cash deal made with both TPG, who will never let YX's current business model continue in its form, and NW, which has over-charged MKE residents on and off for decades.
 
sacamojus
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RE: FL Vs YX..It Aint Over Yet

Wed Aug 15, 2007 11:21 am

Quoting Crewchief (Reply 76):
Let me take a shot at it. Stocks go up, and stocks go down. Cash doesn't. There is a risk that AAI stock will be worth less in the future. Is that risk worth a $.25 premium to cash? Or should the risk be priced higher?

Lets say the investor reinvest the money back into their portfolio with a comparable stock of similiar risk characterstics, the same risk still exist either way. Most investors and hedge funds will not take the cash and run, they will reinvest where there is still a degree of risk. If I remember correctly the all cash buyout will incur capital gains taxes while the stock swap will not. There is value in not having to pay taxes while still keeping an airline stock in your portfolio with similiar or reduced risk as the company will benefit from decreased competition.
 
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knope2001
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RE: FL Vs YX..It Aint Over Yet

Wed Aug 15, 2007 11:24 am

Quoting Tugger (Reply 73):
At the very least the Board has to explain why a lower all cash offer, that others here have explained will cause the shareholders to incur tax penalties is the superior offer.

As rehashed many times in these discussions, the Midwest board is obligated to act in what they view as in the best inerests of their stakeholders. That includes, but is not limited to, increasing shareholder value

The board has no obligation whatsoever to take action to mitigate shareholder tax liabilities.
 
mijoatlanta
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RE: FL Vs YX..It Aint Over Yet

Wed Aug 15, 2007 11:35 am

Quoting Knope2001 (Reply 80):

Ok, first, it's stakeholders...like employees, taxpayers, residents of MKE. Now, it's all about shareholders. But God forbid we consider their tax implications. This is a case of trying to have it both ways. Before, this deal was a travesty for MKE. Now, Midwest is looking out for shareholders. Give me a break.
 
brucek
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RE: FL Vs YX..It Aint Over Yet

Wed Aug 15, 2007 11:39 am

What's the fascination by NW and FL over taking control of XY? I've flown XY before and they are a great (very friendly) airline, and I love the MD80's. Does FL think there isn't enough traffic for both airlines to exist through the upper mid-west of the US? Or does XY want to be taken over?

Thanks, Bruce.
 
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JBo
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RE: FL Vs YX..It Aint Over Yet

Wed Aug 15, 2007 11:53 am

Quoting Brucek (Reply 82):
What's the fascination by NW and FL over taking control of XY? I've flown XY before and they are a great (very friendly) airline, and I love the MD80's. Does FL think there isn't enough traffic for both airlines to exist through the upper mid-west of the US? Or does XY want to be taken over?

1)

Quoting JBo (Reply 34):
It's YX, not XY

2) NW isn't taking over Midwest ... they're merely a passive investor in taking them private. Alot of people here are overstating NW's involvement in this deal.

3) YX does not want to be taken over ... FL made an unsolicited takeover offer primarily because FL has a ton of planes on order and nowhere to put them. MKE, in FL's opinion, would serve as an optimal hub. However, rather than build up a presence and compete directly with YX, FL thinks it would be easier to take the company over in lieu of Midwest's financial troubles over the past few years. YX accepted the offer from TPG as a means to remain independent and avert FL's hostile takeover bid.
I'd take the awe of understanding over the awe of ignorance any day.
 
MSYtristar
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RE: FL Vs YX..It Aint Over Yet

Wed Aug 15, 2007 11:57 am

Quoting SeeTheWorld (Reply 77):
This is hardly comparable

In terms of monetary amounts no, not at all. But I don't think things will as rosey as FL thinks they will if the merger goes though. Just a hunch.
 
citrus1
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RE: FL Vs YX..It Aint Over Yet

Wed Aug 15, 2007 12:06 pm

Quoting JBo (Reply 83):
they're merely a passive investor

That's funny, say it anyway you want Northwest will own a piece of Midwest to do as they please.
 
mijoatlanta
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RE: FL Vs YX..It Aint Over Yet

Wed Aug 15, 2007 12:06 pm

Quoting JBo (Reply 83):
NW isn't taking over Midwest ... they're merely a passive investor in taking them private. Alot of people here are overstating NW's involvement in this deal.

How is it passive, if their involvement prevented the FL deal from going through. Also, as passive as they may pretend to be, I would say they did pretty well in preventing competition in their region. It is a bit naive to say NW is just investing to add to their investment portfolio.
 
quickmover
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RE: FL Vs YX..It Aint Over Yet

Wed Aug 15, 2007 12:12 pm

Quoting Crewchief (Reply 76):
Let me take a shot at it. Stocks go up, and stocks go down. Cash doesn't. There is a risk that AAI stock will be worth less in the future. Is that risk worth a $.25 premium to cash? Or should the risk be priced higher?



Quoting Knope2001 (Reply 80):
As rehashed many times in these discussions, the Midwest board is obligated to act in what they view as in the best inerests of their stakeholders. That includes, but is not limited to, increasing shareholder value

Seems like I remember, over the last few months, all the talk about the "quick buck" investors. These were the bad guys who were only out to make money fast. Now, one of these "quick buck" groups has made a bid, keeping current management, and the company name. Suddenly cash is king. I wonder if they would be as welcomed if they started cutting flights and lower level positions. Carol said that FL's offer was inadequate and money was not the sole consideration earlier. Maintaining service levels and community involvement were more important, but suddenly, that extra 25 cents and keeping current senior management made everything ok.

Please don't tell me that you think NW wants a strong Midwest Airlines to compete against in MKE (code share or not). Please don't tell me that NW is only an investor that has no communication or influence on their investment. They will call the shots from behind the scenes, as they should. Only an idiot would throw out a hundred million or so, turn their backs, and hope for the best. Northwest is a very good airline and they won't leave things to chance in MKE.
 
N908AW
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RE: FL Vs YX..It Aint Over Yet

Wed Aug 15, 2007 12:13 pm

Quoting Travatl (Reply 53):
Did somebody not get their nap this afternoon? Or were just upset because you had to put down your sippy cup when you typed this?

Wha? You could have made it funnier if you typed that something to the effect of...
Did widdle N908AW not get his widdle nappy wappy this afternoon??

But that effectively exposes my credence-inhibiting age.

Anywho...I apologize that you didn't see the humor in that. (Myself, I can't read that line I typed with a straight face. Guess I should have added more adjectives. In any case, why was it necessary to be completely derogatory towards my alleged immaturity (I will be honest, I am  Smile ) But, as you wish.

Quoting SeeTheWorld (Reply 77):
This is hardly comparable. AirTran may acquire YX for more than they should, but if they get them, the synergistic long-term benefits are significant and hard to ignore.

I know it might not be terribly comparable either, but think about the last two mergers in the U.S. to actually go through...

US/HP - I still see America West green and US Airways navy blue whenever I'm at LAS. When I flew them over spring break, it was on an America West plane. They announced it as "US Airways operated by America West". I wouldn't be too weirded out by that, except that this merger is almost 2 and a half years in the making. A few computer glitches have occurred, they still don't have a shared FAR certificate...I admire the combined airline for being unified, but to the public it looks poor.

AA/TW - AA bought TW in part because TWA was in a failure state and on the brink of destruction anyway. The merger went through smoothly and what needed to be absorbed was absorbed. But I have heard (correct me if I'm wrong please) is that pilots and flight attendants absorbed from TWA were poorly treated...they were significantly lower in the hierarchy and some furloughed employees were let go, others had to start from the beginning. STL and JFK are significantly smaller operations than they once more. I know that AA never intended to grow STL as FL intends to grow MKE, but the point I'm trying to make here is that this happy-happy-joy-joy that FL is pitching to MCI, MKE and the general YX-flying public is a euphoric overstatement of what they really want, and what the combined airline would actually achieve. Sure, they want the capacity in MKE. But they also want the 717s to do more point-to-point routes around the nation, routes that aren't as economical with a 73G.
'Cause you're on ATA again, and on ATA, you're on vacation!
 
quickmover
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RE: FL Vs YX..It Aint Over Yet

Wed Aug 15, 2007 12:13 pm

Quoting Crewchief (Reply 76):
Let me take a shot at it. Stocks go up, and stocks go down. Cash doesn't. There is a risk that AAI stock will be worth less in the future. Is that risk worth a $.25 premium to cash? Or should the risk be priced higher?



Quoting Knope2001 (Reply 80):
As rehashed many times in these discussions, the Midwest board is obligated to act in what they view as in the best inerests of their stakeholders. That includes, but is not limited to, increasing shareholder value

Seems like I remember, over the last few months, all the talk about the "quick buck" investors. These were the bad guys who were only out to make money fast. Now, one of these "quick buck" groups has made a bid, keeping current management, and the company name. Suddenly cash is king. I wonder if they would be as welcomed if they started cutting flights and lower level positions. Carol said that FL's offer was inadequate and money was not the sole consideration earlier. Maintaining service levels and community involvement were more important, but suddenly, that extra 25 cents and keeping current senior management made everything ok.

Please don't tell me that you think NW wants a strong Midwest Airlines to compete against in MKE (code share or not). Please don't tell me that NW is only an investor that has no communication or influence on their investment. They will call the shots from behind the scenes, as they should. Only an idiot would throw out a hundred million or so, turn their backs, and hope for the best. Northwest is a very good airline and they won't leave things to chance in MKE.
 
Indy
Posts: 4846
Joined: Thu Jan 20, 2005 1:37 pm

RE: FL Vs YX..It Aint Over Yet

Wed Aug 15, 2007 12:34 pm

Quoting SeeTheWorld (Reply 70):
Do you even know what you're talking about?

Yes I know what I am talking about. It is pretty much a common sense thing. When someone has something up for sale, you bid on it, and they accept your offer especially when the offer and approval have been documented it is enforceable. The equity group could force YX to go through with the sale to them. If YX thought they could have gotten more money for the airline they should have waited longer. They didn't. That is their loss. The only question will be whether the equity group plays along and offers a little more money or whether they decide to take the issue to court of YX accepts the new FL offer. The sale, offer, and agreement to sell is a contract in itself.
Indy = Indianapolis and not Independence Air
 
User avatar
Tugger
Posts: 9492
Joined: Tue Apr 18, 2006 8:38 am

RE: FL Vs YX..It Aint Over Yet

Wed Aug 15, 2007 12:43 pm

Quoting Crewchief (Reply 76):
Stocks go up, and stocks go down. Cash doesn't.

Ummm, I don't know what planet you live on but they one I do cash does go down, and lately especially the dollar. Hence the euro v dollar cost pressures A'bus is contending with right now. Currencies fluctuate on the world market and it affects the US investor greatly.

Tug

[Edited 2007-08-15 05:44:12]
I don’t know that I am unafraid to be myself, but it is hard to be somebody else. - W. Shatner
Productivity isn’t about getting more things done, rather it’s about getting the right things done, while doing less. - M. Oshin
 
sxf24
Posts: 882
Joined: Wed Aug 15, 2007 12:22 pm

RE: FL Vs YX..It Aint Over Yet

Wed Aug 15, 2007 12:45 pm

Quoting Knope2001 (Reply 80):

As rehashed many times in these discussions, the Midwest board is obligated to act in what they view as in the best inerests of their stakeholders. That includes, but is not limited to, increasing shareholder value

The board has no obligation whatsoever to take action to mitigate shareholder tax liabilities.

I've read this theme repeated several time and have seen it develop a life of its own. The whole concept of stakeholder interest is so off base, I joined simply to respond.

The applicable Wisconsin statute says that directors or officer must consider the effects of their actions on stakeholders AFTER they serve the interests of the shareholders.

Shareholders are first. Period.

Any decision that is found to be a disservice to the shareholders will certainly result in immediate and dehabilitating legal action against the board.
 
atlaaron
Posts: 975
Joined: Mon Apr 24, 2006 11:30 pm

RE: FL Vs YX..It Aint Over Yet

Wed Aug 15, 2007 12:52 pm

Quoting Sacamojus (Reply 79):
If I remember correctly the all cash buyout will incur capital gains taxes while the stock swap will not.

You are correct.

Quoting Indy (Reply 90):
The equity group could force YX to go through with the sale to them.

As I explained above, they cannot MAKE them go through with the sale. All they can do is make them pay a termination fee (whatever that amount was set to be).
 
sxf24
Posts: 882
Joined: Wed Aug 15, 2007 12:22 pm

RE: FL Vs YX..It Aint Over Yet

Wed Aug 15, 2007 12:58 pm

Quoting ATLAaron (Reply 93):

As I explained above, they cannot MAKE them go through with the sale. All they can do is make them pay a termination fee (whatever that amount was set to be).

YX has only agreed to pursue the offer, so they could back out at anytime. Formal acceptance is scheduled for 8/15. After that point, a termination fee would likely apply.
 
User avatar
Tugger
Posts: 9492
Joined: Tue Apr 18, 2006 8:38 am

RE: FL Vs YX..It Aint Over Yet

Wed Aug 15, 2007 1:04 pm

Quoting Sxf24 (Reply 94):

Welcome to A.net Sxf24! And thanks for the simple, clear, relevant comments.

Tug
I don’t know that I am unafraid to be myself, but it is hard to be somebody else. - W. Shatner
Productivity isn’t about getting more things done, rather it’s about getting the right things done, while doing less. - M. Oshin
 
MUWarriors
Posts: 196
Joined: Wed May 04, 2005 12:11 pm

RE: FL Vs YX..It Aint Over Yet

Wed Aug 15, 2007 1:05 pm

Quoting Sxf24 (Reply 92):
I've read this theme repeated several time and have seen it develop a life of its own. The whole concept of stakeholder interest is so off base, I joined simply to respond.

The applicable Wisconsin statute says that directors or officer must consider the effects of their actions on stakeholders AFTER they serve the interests of the shareholders.

Shareholders are first. Period.

Any decision that is found to be a disservice to the shareholders will certainly result in immediate and dehabilitating legal action against the board.

Not true. Here is the applicable statute:
"180.0827 Consideration of interests in addition to
shareholders’ interests. In discharging his or her duties to the
corporation and in determining what he or she believes to be in the
best interests of the corporation, a director or officer may, in addi-
tion to considering the effects of any action on shareholders, con-
sider the following:
(1) The effects of the action on employees, suppliers and cus-
tomers of the corporation.
(2) The effects of the action on communities in which the cor-
poration operates.
(3) Any other factors that the director or officer considers per-
tinent. "

The pertinent line there is in addition to. So it is not shareholders above all, it is shareholders + stakeholders. If shareholders always came first a stakeholder law would be useless. Think about it, what purpose would a stakeholder law have if the shareholders could always trump it?
 
Indy
Posts: 4846
Joined: Thu Jan 20, 2005 1:37 pm

RE: FL Vs YX..It Aint Over Yet

Wed Aug 15, 2007 1:08 pm

Quoting Sxf24 (Reply 94):
YX has only agreed to pursue the offer, so they could back out at anytime.

Based on previous discussions on this site the board voted unanimously to accept the offer. The discussions didn't say they voted to pursue the offer. The only way YX could back out is if they had an agreement (written or implied) that permitted such a move. If such a provision existed then a fee would apply I'm sure. It doesn't have to state the term "contract" for a court to see it as such.
Indy = Indianapolis and not Independence Air
 
User avatar
Tugger
Posts: 9492
Joined: Tue Apr 18, 2006 8:38 am

RE: FL Vs YX..It Aint Over Yet

Wed Aug 15, 2007 1:11 pm

Quoting MUWarriors (Reply 96):
may, in addition to considering the effects of any action on shareholders, con-
sider the following:



Quoting MUWarriors (Reply 96):
he pertinent line there is in addition to.

Wrong. The pertinent WORD is "may". They are not required to consider all the other points you included, they are just allowed to if they wish. I agree that if they do not hold shareholder concerns first and foremost they "may" be sued.

Quoting Indy (Reply 97):

Based on previous discussions on this site the board voted unanimously to accept the offer. The discussions didn't say they voted to pursue the offer. The only way YX could back out is if they had an agreement (written or implied) that permitted such a move. If such a provision existed then a fee would apply I'm sure. It doesn't have to state the term "contract" for a court to see it as such.

My goodness, I didn't know you were in the boardroom. I certainly can;t say that I know exactly what documentation has been created for this but I guess you do! Cool!

Tug

[Edited 2007-08-15 06:14:10]
I don’t know that I am unafraid to be myself, but it is hard to be somebody else. - W. Shatner
Productivity isn’t about getting more things done, rather it’s about getting the right things done, while doing less. - M. Oshin
 
SkyexRamper
Posts: 1952
Joined: Sun Mar 27, 2005 12:17 am

RE: FL Vs YX..It Aint Over Yet

Wed Aug 15, 2007 1:20 pm

AirTran Holdings, Inc., Presents New Offer For Midwest Air Group, Inc.
- After Urging from Midwest Shareholders, AirTran Increases Bid -
ORLANDO, Fla., Aug 14, 2007 /PRNewswire-FirstCall via COMTEX News Network/ -- AirTran Holdings, Inc. (NYSE: AAI) the parent of AirTran Airways, today announced that, at the request of Midwest shareholders, AirTran has increased its offer for Midwest Air Group (Amex: MEH), to $16.25 per share in a negotiated merger transaction.
The offer includes $10.00 per share in cash and 0.6056 of a share of AirTran common stock. Based on the closing price of AAI on August 13, 2007, the total value of AirTran's increased offer represents approximately $445 million.

"Owners of Midwest recognize the overwhelming benefits of forming a truly national, low-cost, efficient carrier that will add flights, increase jobs and lower fares," said Joe Leonard, AirTran Airways Chairman and CEO. "Midwest's shareholders are concerned that the acquisition of Midwest by a private equity firm, along with Northwest Airlines, will block competition, raise fares, reduce employment levels and reduce service.

"There is very serious concern among Midwest stakeholders that their interest and those of Midwest employees and communities will not be well served by the proposed acquisition of Midwest by the private equity/Northwest group and that, in any event, antitrust issues may prevent a deal with Northwest from ever closing," Leonard said. "Clearly, our increased offer represents more value and the best course for the future for Midwest owners, employees and customers."

AirTran Airways, a Fortune 1000 company, offers passengers more than 700 affordable, daily flights to 56 destinations throughout the United States. The airline is the second-largest carrier at its hub, Hartsfield-Jackson Atlanta International Airport, and one of America's largest low-fare airlines. With more than 8,800 friendly Crew Members and free online booking on http://www.airtran.com, AirTran Airways makes travel both pleasant and convenient. The airline flies America's youngest all-Boeing fleet, composed of the fuel-efficient Boeing 737-700 and 717-200 aircraft. AirTran Airways was also the first to install XM Satellite Radio on a commercial aircraft and the only airline with Business Class seating on every flight. For more information, visit http://www.airtran.com.

Editor's note: In the event a negotiated agreement is reached between AirTran Holdings Group, Inc and Midwest Air Group, Inc., investors are urged to read the information which would be filed with the United States Securities and Exchange Commission in connection with such a merger, including the amended registration statement to be filed by AirTran with respect to its Registration Statement (No. 333-139917) on Form S-4 (the "Registration Statement") which would be filed with the Securities and Exchange Commission relating to the AirTran common stock to be issued in connection with such a transaction, the joint proxy statement/ prospectus and related proxy materials which would be sent to the holders of common stock of AirTran Holdings, Inc. and to the holders of common stock of Midwest Air Group, Inc. to solicit their respective approvals of a merger agreement and the transactions contemplated thereby, each of which would contain important information, including a copy of any merger agreement as an exhibit, and any amendments or supplements to those documents. Such documents, when and if filed, will be available free of charge from the SEC website at www.sec.gov. Any combined proxy statement/prospectus of Midwest and AirTran will be sent, free of charge, to persons who are holders of AirTran Common Stock as of the record date for an AirTran Special Meeting and to holders of Midwest Common Stock as of the record date for a Midwest Special Meeting.


SOURCE AirTran Holdings, Inc.

----------------------------------------------------------


Come on $500 Million..

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