...Midwest should take the deal, throw in Alaska (as I have said before), and you have got a domestic US (low fare?) contender. Alaska wouldn't be happy about it tho......Might have to be a hostile takeover there too.. Bryant Petitt Cumming, GA --- Bill Hough <psa188@xxxxxxxx> wrote: > =20 > ---------------------------------------------------------------------- > This article was sent to you by someone who found it > on SFGate. > The original article can be found on SFGate.com > here: > http://www.sfgate.com/cgi-bin/article.cgi?file=3D/n/a/2007/01/11/financial/= > f072215S78.DTL > > --------------------------------------------------------------------- > Thursday, January 11, 2007 (AP) > AirTran Boosts Offer for Midwest Air > By GRETCHEN EHLKE, Associated Press Writer > > > (01-11) 07:22 PST MILWAUKEE (AP) -- > > AirTran Holdings Inc. raised its hostile bid for > rival Midwest Air Group > Inc. on Thursday by almost 18 percent to about $345 > million after the > regional airline rejected its previous offer last > month. > > This time AirTran, based in Orlando, Fla., took > the offer directly to > shareholders, bypassing Midwest's board of > directors. > > "We thought we would get no more consideration > than we've gotten so far. > We thought we'd let the owners decide," AirTran > Chairman and Chief > Executive Joe Leonard said in Milwaukee. > > AirTran earlier bid $11.25 per share for Midwest > Air Group, but the > Midwest board turned down the offer on Dec. 6. > > The new offer is equivalent to $13.25 per Midwest > share, based on the > closing price of AirTran common stock on Monday. The > bid represents a > premium of almost 3 percent over Midwest's closing > share price of $12.90 > on Wednesday. > > Carol Skornicka, Midwest's senior vice president > of corporate affairs, > said the company's board "won't be engaged directly > in responding" to the > latest offer. She said it "was somewhat surprising > that they would go > directly to shareholders at this stage." > > "We expected that they would do something. They > said they would be back. > This is kind of an accelerated process," Skornicka > said. > > Midwest shares rose 27 cents, or 2.1 percent, to > $13.17 in morning tradi= > ng > Thursday on the American Stock Exchange. Airtran > shares rose 24 cents to > $12.16 on the New York Stock Exchange. > > Midwest promotes itself as "the best care in the > air," with its wide > leather seats and chocolate chip cookies baked on > board. > > Some passengers and shareholders believe those > touches might end if > AirTran is successful in its hostile takeover. > > But Leonard said the proposed deal would combine > the best of both > airlines, including the traditional Midwest perks. > > The offer from the parent of discount carrier > AirTran Airways through > subsidiary Galena Acquisition Corp. was due to > expire Feb. 8. > > Leonard has said a combined company would reach > $3.5 billion in revenues > and have some 15,000 employees by the end of this > year. > > "It is clear to most stakeholders that AirTran > Airways can grow Midwest > Airlines, expand the Milwaukee market and add more > destinations and > service beyond what Midwest can achieve > independently," he said in a > statement. > > The Air-Tran-Midwest proposal isn't the only > airline merger being > discussed. > > US Airways Group Inc. said Wednesday it will > increase its offer for Delta > Air Lines Inc. by almost 20 percent to $10.3 billion > in cash and stock. > Delta had rejected the previous offer and has been > opposed to the takeover > bid. > > United Airlines parent UAL Corp. also has > explored the possibility of a > merger with Continental Airlines Inc., though no > agreements have been > reached and a deal remains far from certain. That > deal could hinge on the > success or failure of US Airways' bid for Delta. > > Meanwhile, The Wall Street Journal reported > Wednesday that Northwest > Airlines Corp. and Delta, both in bankruptcy, have > been talking about a > possible deal. > > A Jan. 24 hearing has been scheduled by the > Senate Committee on Commerce, > Science and Transportation on the state of the > airline industry and the > potential impact of mergers. > > ___ > > On the Net: > > Midwest: > > AirTran: > > www.midwestairlines.com > > www.airtran.com > --------------------------------------------------------= > -------------- > Copyright 2007 AP > ____________________________________________________________________________________ Do you Yahoo!? Everyone is raving about the all-new Yahoo! Mail beta. http://new.mail.yahoo.com