Midwest Air Group
(AMEX:MEH) shares rose $0.79, or 5.37%, to $15.49 today after the
airline finally agreed to be bought out by TPG after long-time rival
AirTran (NYSE:AAI) conceded defeat. Shareholders are happy that such a
deal was completed amid concerns that AirTran's hostile bid might
through the entire deal up in the air. Currently, shares are trading
approximately $1.50 below the buyout price.
Midwest agreed to be
bought out in a $450 million deal valuing its shares at $17 each to be
paid in cash. The company's management originally opposed any kind of a
deal, especially one with AirTran; however, after 60% of its shares
were tendered in favor of a deal the company decided to explore its
options. Midwest's Chairman and CEO called the deal a "milestone" for
the company, adding that he was happy the airline could be kept in
Wisconsin.
TPG is a veteran airline investor that has had
previous stakes in names like Continental Airlines, America West
Holding Corp., and Ryanair Holding Corp. The investment group said it
plans to provide the company with additional industry experience as
well as expand its partnership with Northwest, whose stake is rumored
to be around 40%.
Related CompaniesAMR Corporation (AMR)Southwest Airlines (LUV)Northwest Airlines (NWA)