AirTran raises offer for Midwest Air |
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Thu, 11 Jan 2007 13:17
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ORLANDO, Fla. (AFX) - AirTran Holdings Inc., parent of low-fare airline AirTran Airways, on Thursday raised its bid for Milwaukee-based Midwest Air Group to $345 million in cash and stock from about $290 million.Midwest rejected the initial bid in early December, and said Wednesday that offer undervalued the company and didn't reflect the long-term opportunity inherent in Midwest Air's strategic growth plan. The Milwaukee-based carrier maintained it is better off as a standalone company.AirTran is now offering to pay $13.25 per Midwest share, based on AirTran's Monday closing stock price on the New York Stock Exchange. The amount is $2 per share more than AirTran's October offer, and represents a 61 percent premium to the 30-day average closing price of Midwest stock at the time of the initial proposal.The new bid consists of about $6.63 in cash and 0.5884 shares of AirTran common stock for each Midwest share.'We are committed to bringing these two great airlines together to form an even better airline based on our conviction that it is in the best interests of Midwest and AirTran shareholders, the employees of both companies and the communities the air carriers serve,' Leonard said in a statement.AirTran is making the offer through its newly formed subsidiary, Galena Acquisition Corp. The exchange offer is set to expire on Feb. 8 unless extended.Copyright 2006 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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AirTran raises offer for Midwest Air to 345 mln usd 