The parent company of Airtran Airways, AirTran Holdings Inc., (AAI) continues to go after Midwest Air. Today AirTran raised their offer again to $15 a share, or $389 million dollars for the airline.
AirTran is also trying to nominate three directors to Midwest’s board. The new bid is being submitted a week before the shareholder record date, April 9, that Midwest has set for a vote.
"We firmly believe in the underlying value and benefits of combining these companies," AirTran Chief Executive Joe Leonard said in a statement.
A spokesperson for Midwest said that they would consider the proposal. Midwest Air has been unable to sustain a profit margin for the last 6 years. A few decent quarters does not merit struggling the company along.
My opinion: Midwest Air take the offer. Once NWA comes out of bankrutpcy, they will take you on head to head. Teaming up with AirTran will be a very strong move for your airline. If AirTran can take on Delta in Atlanta, they can certainly take on NWA.
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