AirTran Extends $389M Offer for Midwest Air Group to Aug. 10
ORLANDO, Fla. --
AirTran Holdings Inc. on Monday extended its latest bid for Midwest Air Group to Aug. 10 to allow time for a new board of directors to be certified and consider the offer.
AirTran has offered cash and stock worth $389 million for the Milwaukee airline, which has repeatedly rebuffed bids for a takeover.
Midwest's board of directors face shareholders Thursday at the company's annual meeting.
A third of Midwest's nine members on the board are up for election. AirTran, operator of low-cost AirTran Airways, is confident their own slate of three nominees will be elected.
Orland-based AirTran said Monday that 59.9 percent of all outstanding shares of Midwest stock have been tendered so far.
AirTran hopes the new directors could force Midwest to enter into negotiations or at least consider the offer.
Midwest said in response on Monday that its strategic initiatives, including a new code share agreement with rival Northwest Airlines, and efforts to increase plane capacity, offer shareholders more value. The company reiterated its call to shareholders to elect its own slate to the board.
Shares of Midwest fell 14 cents to $14.91 Monday while shares of AirTran fell 35 cents to $11.53.
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