AirTran Holdings Inc., (AAI) the parent company of AirTran Airways has extended their buyout offer for Midwest Air until April 11, 2007. The Orlando based carrier said it wanted to give Midwest share holders plenty of time to "receive all the information they need" to make a decision. The new deadline does not come with any additional increases in offers by AirTran.
AirTran also submitted preliminary proxy materials to the U.S. Securities and Exchange Commission nominating three directors to the Midwest board and urging Midwest hold a shareholder meeting to elect them.
AirTran hopes the move will "send a strong signal" about its intent to maximize shareholder value and help the merger proposal "get a fair hearing the boardroom."
Midwest has rebuffed any attempt from AirTran to merge and has been on the offensive by announcing new destinations, increasing service and even gathering support in Congress.
U.S. Sen. Herb Kohl, a Wisconsin Democrat and chairman of the Senate Judiciary Committee's antitrust subcommittee, received a commitment from the Justice Department's top antitrust official to review any new information from Kohl's staff about any competition concerns.
My personal opinion, go ahead let the two companies combine. AirTran Airways has a nice product. I just do not see Midwest Air surviving alone especially when Northwest Airlines comes out stronger from bankruptcy protection later this year. Midwest Air is in NWA territory, and everyone knows that NWA will not stand for that. Midwest has not made a significant profit in years and it is not likely they will make a significant one in the future without a major injection of cash.
EarthTimes.org and Chicago Tribune
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