Monday, June 11, 2007

AirTran extends Midwest tender offer to August 10

ORLANDO (Thomson Financial) - AirTran Holdings Inc, the parent of AirTran Airways, today said it has extended its hostile 15 usd per-share offer for rival Midwest Air Group until August 10.

At the close of business on Friday June 8 - the previous deadline - Midwest shareholders had agreed to tender more than 14.6 mln shares to AirTran (nyse: AAI - news - people ) subsidiary Galena Acquisition Corp, representing 59.5 pct of all outstanding shares of Midwest Air Group, (amex: MEH - news - people ) or 64.1 pct of outstanding shares not held by the Midwest board or management.

'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 Joe Leonard, AirTran Airways' chairman and chief executive officer.

'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 Annual Shareholders Meeting is scheduled for June 14 and AirTran has called for shareholders to support the election of John Albertine, Jeffrey Erickson and Charles Kalmbachat to the board.

The incumbent board of Midwest unanimously rejected AirTran's revised 15 usd per-share offer on April 13, describing it as 'inadequate'.

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