AIRLINE INDUSTRY INFORMATION-©1997-2007 M2 COMMUNICATIONS LTD
The board of directors of Midwest Air Group (Amex:MEH), the parent company of Midwest Airlines, has announced that it has determined, unanimously, to pursue an all-cash offer from TPG Capital L.P. on behalf of an affiliate of TPG and one or more partners, to acquire all of the outstanding shares of Midwest for USD16.00 per share.
The board reportedly took its action following receipt of a letter from AirTran Holdings Inc (NYSE:AAI). AirTran stated in the letter that it was making its best and final offer to acquire the outstanding Midwest shares, pursuant to a one-step merger for consideration consisting of cash and stock at USD15.75 per share.
The Midwest board subsequently concluded that the TPG offer would result in greater value and certainty for Midwest shareholders than the AirTran offer. TPG claimed its offer would enable the company to continue to provide customer-oriented quality air service and ensure greater stability and prospects for the company's constituencies.
Midwest and TPG are expected to execute a definitive merger agreement no later than 15 August 2007.
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