Midwest Air Group today announced it would allow AirTran Airways' parent company to present its $389 million merger proposal, following preliminary results that show the election of three AirTran-nominated candidates to Midwest's board of directors, which Midwest management had opposed. Midwest committed neither to the merger nor negotiations, nor set a date for the presentation.
"While we are disappointed by today's results, we recognize that our shareholders have spoken," said Midwest chairman and CEO Timothy Hoeksema. "If today's election says anything at all, it says that our shareholders want us to listen and that is what we intend to do. The board remains fully committed to creating value for Midwest shareholders."
AirTran said its three electees received an estimated 65 percent of shares voted. "We believe these three new directors will bring a fresh, independent perspective to the Midwest board and will encourage the board to fully explore its strategic options, including sitting down with us to fully evaluate how a merger with AirTran can provide greater value for the Midwest shareholders, employees and customers," said AirTran chairman and CEO Joe Leonard.
AirTran's hostile nine-month pursuit of Midwest heated up in recent days, following AirTran's announcement that, as of June 8, Midwest shareholders have agreed to tender more than 59 percent of outstanding shares
(BTNonline, June 11), Midwest's Tuesday announcement that it would fall short of analysts' second-quarter financial expectations and Leonard's subsequent call for Midwest management to enter into merger discussions.