AirTran Yet Again Ups Midwest Bid

AirTran today once again increased its cash and stock offer in its hostile bid for Midwest Airlines, raising the total equity offer to $389 million. AirTran in January upped its bid to $345 million from $290 million.

AirTran chairman and CEO Joe Leonard today in a statement said the carrier is seeking Midwest's board and management to "enter into discussions with us prior to Midwest's May 23, 2007, annual meeting."

Leonard continued, "If we are not able to enter into discussions with Midwest prior to the annual meeting, Midwest shareholders will have the opportunity, at that time, to control their own destiny by determining whether the existing board of directors is really serving the best interests of shareholders."

Midwest's board today requested that shareholders take no immediate action on the offier, noting that it would "review and consider AirTran's offer and make a recommendation to shareholders no later than April 13."

AirTran in February proposed three nominees to Midwest's board of directors, and Leonard today said that if the current board "is not meeting its fiduciary obligations, they should vote to elect the directors AirTran has nominated to the Midwest Board."

"Our slate of highly experienced corporate governance and airline experts are committed to acting in the shareholders' best interests and they will be able to evaluate, in a fair and independent way, which alternative—the AirTran-Midwest combination or the Midwest 'standalone' plan—will provide greater value for the company and its shareholders," Leonard said.