AirTran Again Extends Midwest Deadline

AirTran Airways today extended the deadline for Midwest Air Group shareholders to accept its $15-per-share offer to Aug. 10 from June 8. AirTran also claimed that, as of Friday, Midwest shareholders have agreed to tender more than 59 percent of outstanding shares.

"We are gratified by the response we are receiving from Midwest's shareholders regarding both the tender offer and the slate of directors that we have nominated for the Midwest Board," said AirTran chairman and CEO Joe Leonard in a statement. "Based on the support we have heard from Midwest shareholders and other observers, they want a new set of eyes and a fresh, independent voice inside the Midwest boardroom so that the AirTran offer can get a full and fair hearing."

Midwest's management, which has consistently opposed AirTran's takeover attempts, in response today said that "regardless of the results, the company's board of directors continues to believe there is greater value for shareholders in the company's long-term strategic plan than in the offer proposed by AirTran."

Midwest chairman and CEO Timothy Hoeksema pointed to the carrier's developing 50-seat regional jet program, additional MD-80 jet purchases, a new dual-seating option and a planned codeshare with Northwest Airlines as examples of future revenue enhancements for Midwest.

AirTran's move is the latest development in its nine-month battle to acquire the carrier over the objections of Midwest management. AirTran initially proposed a merger to Midwest in October 2006, appealed directly to Midwest shareholders in December following Midwest management's rejection of the offer, and has increased the offer and extended deadlines to tender shares several times since. AirTran's current offer stands at $389 million.

Low-cost carrier AirTran operates a hub in Atlanta's Hartsfield-Jackson Airport, while Midwest offers service from Milwaukee and Kansas City, Mo.