The board of Midwest Air Group Inc. has recommended shareholders reject a buyout offer worth $345 million by AirTran Holdings Inc.
The Milwaukee-based parent of Midwest Airlines said in a Securities and Exchange Commission filing Thursday the board unanimously recommended that shareholders reject the offer and not tender their shares to AirTran.
AirTran, based in Orlando, disclosed in mid-December that it had bid $11.25 per share on Oct. 20 for Midwest Air Group, but Midwest turned down the $290 million offer on Dec. 6.
AirTran Holdings Inc., parent company of AirTran Airways, then upped the offer earlier this month, offering shareholders $13.25 a share in cash and stock.
Midwest's board said in the filings the offer was "inadequate."
"In light of Midwest's future prospects, the interests of the shareholders and other stakeholders will be best served by Midwest continuing to pursue its long-term strategic plan," the board said in the filings.
Since the initial offer, AirTran Holdings chairman and chief executive Joe Leonard has kept courting Midwest and most recently, its shareholders through letters, urging them to have the board consider the proposal. A letter dated Wednesday told shareholders Midwest's growth plan simply wasn't good enough.
"This plan simply doesn't produce significant growth or prepare them to compete effectively in the future," Leonard wrote.
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On the Net:
Midwest: http://www.midwestairlines.com
AirTran: http://www.airtran.com
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