Less than 48 hours after Midwest Airlines' board of directors endorsed its sale to private equity firm TPG, the rebuffed AirTran Airways today once again upped its bid for the Milwaukee-based carrier, raising the per-share price to $16.25 in cash and stock, compared with TPG's cash offer of $16 per share.
While AirTran earlier this week appeared resigned to accept Midwest's planned TPG transaction—referring to the Midwest pursuit in the past tense after negotiations ended and the bid expired—the carrier cited "urging from Midwest shareholders" in raising the bid to roughly $445 million.
Midwest in a statement today said its board has received the new AirTran offer and would take it “under consideration.”
Midwest Airlines' board this week said it unanimously agreed to proceed with a cash offer from the private equity firm TPG Capital over AirTran's last proposal—then at $15.75 per share in cash and stock
(BTNonline, Aug. 13). Northwest Airlines said it would help to finance the TPG transaction, but said it would not be involved in the "management or control" of Midwest. Midwest had said it expected to enter into a definitive deal with TPG by Wednesday.
AirTran Airways chairman and CEO Joe Leonard in a statement today said, "Midwest's shareholders are concerned that the acquisition of Midwest by a private equity firm, along with Northwest Airlines, will block competition, raise fares, reduce employment levels and reduce service."