Midwest Air Group Board Rejects AirTran Offer as Inadequate and Opportunistic; Reiterates Strength of Its Strategic Plan

Midwest Air Group, Inc. announced unanimous recommendation that Midwest's shareholders reject AirTran Holdings, Inc.'s unsolicited offer to acquire all outstanding shares of Midwest for a combination of $6.625 in cash and 0.5884 of a share of...


MILWAUKEE, Jan. 25 /PRNewswire-FirstCall/ -- The board of directors of Midwest Air Group, Inc. (Amex: MEH), parent company of Midwest Airlines, today announced it has unanimously recommended that Midwest's shareholders reject AirTran Holdings, Inc.'s (NYSE: AAI) unsolicited offer to acquire all outstanding shares of Midwest for a combination of $6.625 in cash and 0.5884 of a share of AirTran common stock and not tender their shares to AirTran.

The board, with its legal and financial advisors, reached its conclusion after careful consideration -- which included a thorough review of the AirTran offer, the various alternatives available to Midwest and Midwest's strategic plan.

"Our board determined that AirTran's offer is opportunistic and undervalues Midwest," explained Timothy E. Hoeksema, chairman and chief executive officer. "The board believes that Midwest and its shareholders are poised to realize the benefits of Midwest's long-term strategic plan, and that today's earnings announcement indicates that those efforts are driving growth for the company."

Mr. Hoeksema pointed out that the company made a series of investments in equipment and service during the airline industry's recent down cycle, and also noted that the industry is in recovery mode. The board believes the market will continue to improve and that neither market conditions nor Midwest's growth prospects are fully reflected in Midwest's current stock price, reinforcing the opportunistic timing of AirTran's offer.

Midwest filed a Schedule 14D-9 with the Securities and Exchange Commission today, which sets forth the reasons for the board's recommendation and related information. These reasons include:

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