Midwest Air has one month from February 8th to decide whether or not to accept the $345 million dollar take over bid by AirTran Holding, Inc. (AAI) the parent company of AirTran Airways.
"The extension shows that AirTran is not getting enough support" from Midwest shareholders, Jim Corridore, a Standard & Poor's analyst in New York.
AirTran Airways may be forced to raise their bid to bring in more support. Midwest has continued to claim they would rather remain independent and have been telling investors of their new expansion plans to counter claims that they are not growing and they are too small to fight the bigger competitors, such as rival Northwest Airlines.
AirTran said it is seeking to elect directors to Midwest's board because "those charged with fiduciary obligations are more concerned about their own positions than permitting the owners of Midwest to accept AirTran's offer." Midwest has eight directors, according to the company's Web site.
This might be the end of the hostile takeover for AirTrans as Midwest continues to deny them and other deals in the industry have fallen apart lately.
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