AirTran/Midwest deal article

[-9Capt]

Octavian funds would support a higher offer for Midwest Air



NEW YORK (MarketWatch) - Octavian Master Fund and its affiliates, which own about 5% of the shares of Midwest Air Group Inc. said in a federal filing they supported the regional airline's resistance to a takeover offer from AirTran Holdings Inc. but would support a merger under "the right terms." If AirTran raises its roughly $318 million cash-and-stock offer, extended until April 11, "we would strongly encourage and expect the board and management team of Midwest to abide by their fiduciary duties and immediately enter into good faith negotiations to effectuate a transaction," according to Octavian's filing.

 

[Eagle757shark]

An indication to AirTran that the deal is all about price. I've been wondering all along what would be the magic number to engage the management team at Midwest. It seems Octavian is throwing out the bait, now will AirTran bite with a higher offer. Considering that only 7% of the stock has been tendered to AirTran, could mean the other shareholders feel the same way as Octavian. The next few months should be interesting.

 

[Eagle757shark]

Investors: AirTran should boost Midwest offer

By DAVE HIRSCHMAN
The Atlanta Journal-Constitution
Published on: 03/26/07
A New York hedge fund that owns more than 5 percent of Midwest Airlines stock is encouraging the company to seriously consider a merger with AirTran Airways if the discount carrier increases its offer.
AirTran launched a hostile bid for Midwest in December, offering $345 million in a cash and stock deal. But Midwest has consistently rebuffed AirTran and called its most recent offer of $13.25 a share "inadequate and opportunistic."

In a letter to Midwest's board released Monday, Richard Hurowitz, chief executive of Octavian Advisors, encouraged Midwest directors to carefully consider a merger if AirTran ups its price.
"Octavian does not currently believe that the AirTran proposal reflects the full value of Midwest," Hurowitz said. "We do believe, however, that under the right terms a combination fo the two companies makes enormous strategic sense . . .
"In the event AirTran were to materially increase its offer for Midwest . . . we would strongly encourage and expect the board and management team of Midwest to abide by their fiduciary duties and immediately enter into good faith negotiations to effectuate a transaction."
An AirTran tender offer, made directly to shareholders after management rebuffed a merger, as gotten a cool reception. About 7.4 percent of Midwest shareholders have agreed to sell their shares. The current offer expires April 11 and can be renewed indefinitely.
AirTran also is seeking to install three of its own candidates on Midwest's 12-member board at the airline's next annual meeting, but no meeting date has been set.
Carol Skornicka, Midwest's general counsel, said Octavian's position supports the Milwaukee-based carrier's contention that AirTran's offer is too low.
"All the investors agree that the current offer is inadequate," she said. "That's what Octavian seems to be saying as well."

 

[c9skytrain]

If I owned 5% of Midwest stock, I would encourage AAI to up the offer also.

 

[ultrarunner]

If I owned 5% of Midwest stock, I would encourage AAI to up the offer also.

No $hit. Everyone has their price. This deal will happen eventually.

 

[Steeler Fan]

I talked to a Midwest Capt (17 yrs seniority) 2 days ago. He said he heard that the deal is dead, and the come 1 April, Midwest is announcing a purchase order for Airbuses (or is it Airbi?). In other words, nobody on our level will really know until it happens. We'll probably find out on Flightinfo first, though.



My reaction too was this was all about offering the "right price". I'm sure most of us just want to know what's going to happen, especially those who are waiting to upgrade soon.

 

[Joey Bayonne]

and the come 1 April, Midwest is announcing a purchase order for Airbuses (or is it Airbi?).

So let's see then, Midwest will be flying Airbus, MD-80(8)'s, B717's as well as B1900's and 328Jets through Skway. Good Luck with all of that!

Sounds like a bluff to me but what do I know? Whatever happens I just hope it is equitable for both sides...

 

[Eagle757shark]

I talked to a Midwest Capt (17 yrs seniority) 2 days ago. He said he heard that the deal is dead, and the come 1 April, Midwest is announcing a purchase order for Airbuses (or is it Airbi?). In other words, nobody on our level will really know until it happens. We'll probably find out on Flightinfo first, though.



My reaction too was this was all about offering the "right price". I'm sure most of us just want to know what's going to happen, especially those who are waiting to upgrade soon.

Midwest Capt with 17 years seniority said the deal is dead. Sounds like the infamous "IT"S A DONE DEAL" so often quoted in this industry. Do I know what is going to happen, NO! Does this Captain, NO! I will say though it will all come down to AirTran and the shareholders at Midwest. Even the Midwest spokeswoman in this article hints that it all comes down to price. If AirTran ups the offer to what the shareholders find favorable, there may be a deal. Time will tell, just waiting to see how it all plays out.

 

[metroplex]

it was always about price. AAI just has not much more to offer or they believe MEH is not more worth...80s and B1900 are going away, so the mix will be 717, maybe Airbus and 328Jet on the connect side.

 

[Flash]

I talked to a Midwest Capt (17 yrs seniority) 2 days ago. He said he heard that the deal is dead, and the come 1 April, Midwest is announcing a purchase order for Airbuses (or is it Airbi?). In other words, nobody on our level will really know until it happens. We'll probably find out on Flightinfo first, though.


I think the date he gave you might have something to do with an announcement like this, but maybe it's just a coinkidink