Midwest Air Group (AMEX:MEH) and
AirTrans Holdings
(NYSE:AAI) shares both rose more than 2% today as the companies prepare
to battle during Midwest's upcoming annual shareholders meeting over a
proposed hostile takeover. The fight promises to be an interesting one
since the Wisconsin-based carrier faces strong shareholder support to
the merger.
The company revealed today that 56.6% of the total
outstanding shares were tendered in favor of the deal; however, they
remain armed with a poison pill and a Wisconsin law that allows
companies to consider not only shareholders but also all constituent
interests when considering a merger. In the end, these ensure that no
deal is possible without board support, and that will depend on
AirTrans' success on June 14th.
Midwest has also made things
complicated for AirTrans even if they do successfully take over the
company. The carrier announced a partnership with Northwest today that
will add 250 city pairs and more than 1,000 flight options for the
customers of both airlines. These new routes will greatly expand routes
for Midwest as an independent company but may end up conflicting with
AirTrans routes while supporting their competition. Regardless, this is
definitely a situation
worth following...
Related CompaniesAMR Corporation (AMR)Southwest Airlines (LUV)SkyWest (SKYW)