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%.

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In a largely expected move, exchange holding Borse Dubai offered $4 billion - all cash - for Nordic exchange operator OMX, easily topping Nasdaq Stock Market Inc.'s (NASDAQ: NDAQ) cash and stock offer valued at $3.7 billion.

Though Borse Dubai already has almost a 30% stake in OMX, which operates exchanges in countries such as Sweden and Iceland, some shareholders may resist the deal not because of its value but its origin. A buyout by a Middle Eastern, government controlled holding company may be especially unappealing to the Swedish government which has a 6.6% stake in the company.

Nasdaq CEO Bob Greifeld is allegedly planning to travel to Sweden to meet with management and key shareholder of OMX, and Nasdaq said it remains fully committed to its offer.

Borse Dubai Chairman Essa Kazim had a different message, saying "This combination [of Borse Dubai and OMX] will establish OMX as the [Borse Dubai] group's global platform, building on OMX's leading technology and strong brand to position it to become one of the fastest-growing major exchange networks in the world."

Borse Dubai officials have been in Sweden all this week trying to win over OMX management and shareholders as well.

"We are prepared to give it financially full backing, to grow it and turn it into a truly global exchange," Borse Dubai Chairman Kazim said.

Though there are still many hurdles, the lure of the wealth of oil money behind the phrase "financially full backing" may prove too much for OMX to resist in the long-run, especially if Borse Dubai sweetens its offer.

Despite obviously jeopardizing the Nasdaq-OMX deal, Nasdaq shares are actually up today on continued speculation that there is a possibility of a three-way deal between Nasdaq, OMX, and Borse Dubai. And this makes NDAQ a stock worth watching!

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Late afternoon yesterday, federal judge Paul Friedman rejected the Federal Trade Commission's request to block Whole Foods Market Inc.'s (NASDAQ: WFMI) proposed acquisition of Wild Oats Markets Inc. (NASDAQ: OATS).

The FTC had argued that the half-billion dollar deal would stifle competition in the already niche organic foods sector, but Whole Foods countered that their true competition is now general supermarkets which have increased their organic products offerings.

Chairman and CEO of Whole Foods John Mackey said in a statement, "The District Court's ruling affirms our belief that a merger between Whole Foods and Wild Oats is a winning scenario for all stakeholders. We believe the synergies gained from this combination will create long-term value for customers, vendors and shareholders as well as exciting opportunities for team members."

The FTC can still try to block the deal by seeking a stay from the U.S. Court of Appeals for the District of Columbia Circuit or the district court, though all FTC Competition Director Jeffrey Schmidt would say is "we are reviewing our options."

In the meantime, Wild Oats shares are up nearly 18% to $17.90 and Whole Foods shares are up almost 5% to $43.22.

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Capital Southwest Corporation (NYSE:CSWC) shares moved down marginally after Ned Sherwood disclosed a 6.6 percent stake and expressed his belief that the company is trading well below its intrinsic value and highlighted several concerns it has about the company's strategy and direction. Shareholders are hoping that the investor will help push the company to unlock value and jump its share price.

Mr. Sherwood disclosed a letter to the board of directors indicating his belief that the company's shares are worth between $175 and $200 per share. He believes this discount can be attributed to, among other things, certain policies and practices that the company has used in the past and doesn't intend to change. In his letter, he made several suggestions to unlock value for shareholders.

One the company's policies causing major concern is the fact that unlike most Business Development Companies (BDCs), the company has chosen to retain its realized gains rather than distribute it to shareholders. The company's BDC structure enables it to pass all tax liability to shareholders who would have to pay a 15% tax; however, by retaining all income, the company is forced to pay the 35% corporate tax rate!

Moreover, the company has chosen not to exercise its registration rights on its four most significant holdings in public companies so such shares can be freely traded on the open market. The company's venture capital investments have resulted in significant security holdings that it has refused to sell or exercise in the free market. Clearly, the growth isn't there to justify holding them.

These two policies alone caused a reduction of $100 per share from the company's net asset value, which stands near $233! There are also other problems such as the company's excessive extra cash and credit lines that are being unused. If this were returned to shareholders through a buyback or special dividend, we could see substantial gains in share price. Combined, these factors make CSWC a stock worth watching!

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Acxiom Corporation (NYSE:ACXM) shares moved up marginally after MMI Investments announced that they would withdraw their opposition to the company's proposed merger at $27.10 per share. The change of heart comes amid an increasingly difficult credit market that has clearly caused concern that there would be a buyout at all as the share price is trading at only $22.62 per share.

Shareholders are clearly concerned that tightening credit markets may make it too difficult for the acquiring company to obtain necessary financing to complete the deal. This concern is so great that the stock is actually trading well below the buyout price, which causes increased concern that the buyout offer itself is the only thing keeping the company afloat.

MMI Investments was quick to note, however, that it reserved the right to nominate its own candidates to the company's board of directors in the event that a merger agreement is not consummated between the two companies. Shareholders are hoping that the activist hedge fund will be able to effect change in the struggling company before it is too late. Combined, these factors make ACXM a stock worth watching!

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Vitesse Semiconductor (OTC:VTSS) shares fell over eight percent today after Chapman Capital disclosed an 8.3 percent stake in the company and disclosed an e-mail sent to the company inquiring as to the impact of a recent court ruling against the company's financial auditor for negligence as it could equate to future risks. The series of communications also showed a shocking disregard for shareholders by the chief financial officer of the company.

The series of communications, found in the company's recent Schedule 13D/A filing, outlined a simple request by Chapman Capital for the company to make a five minute phone call to inquire about the potential impact of these rulings. This is an important matter since the financial statements the firm is drafting are necessary for the next annual meeting. The CFO not only refused to call the company but also turned down the hiring, by Chapman, of a personal assistant to assist the chief financial officer in completing his obligations to shareholders!

This is only the latest in a series of problems facing the company. Chapman Capital has been fighting the company recently to hold its annual meeting so that it can nominate its own slate of directors to effect change. The activist hedge fund believes that the company is using its failure to provide audited financial statements to the SEC as an excuse to not hold a meeting. Essentially, they are holding shareholders hostage by failing to provide financial statements to those same owners!

Shareholders are hoping that Chapman Capital will be able to nominate its own members to the company's board of directors as it could mean significant changes. Vitesse has already dropped from a high of over $3/share in 2006 to its current levels just above $1/share. Clearly, change is needed. This makes VTSS a stock worth watching!

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Charter Communications (NYSE:CHTR) shares spiked late yesterday before returning to previous levels after billionaire investor Paul Allen disclosed in a Schedule 13D/A filing that he may pursue a recapitalization, restructuring or possible going private transaction. Shareholders are hoping that he can effect some change given the company's stagnant share price.

Paul Allen owns a majority stake in the company through Class B shares that hold greater voting rights than regular shares. There has been much speculation that Charter may become a takeover target given the fact that it has over five and a half million subscribers and is one of the only traditional cable companies that remains open to a sale. However, the CEO continues to insist that the company is on the buying end not the selling end.

There are a lot of rumors going around as to Paul Allen's plans for the company. Some suggest that he will recapitalize the company and provide a dividend to shareholders while others insist that he is intent on buying the company outright. Regardless, any measures to improve shareholder value is a welcome change for Charter shareholders. This makes CHTR a stock worth watching!

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Berkshire Hathaway (NYSE:BRK) disclosed its long-awaited Schedule 13F/HR today containing Warren Buffet's latest holdings. Among other things, the document showed that the Oracle of Omaha has loaded up on Dow Jones shares while hiding his stake in two railroad companies.

The Schedule 13F/HR statement showed new stakes in Bank of America (NYSE:BAC) and Dow Jones (NYSE:DJ). The famous investor also raised his stakes in several companies, including Johnson & Johnson (NYSE:JNJ), Nike Inc. (NYSE:NKE), Proctor & Gamble (NYSE:PG), US Bancorp (NYSE:USB) and others. Buffet appears to be bullish on banking stocks while taking a short-term position in Dow Jones despite his bearish sentiment on the newspaper business.

Interestingly, Warren Buffet decided to request permission from the SEC to not disclose its railroad holdings in Union Pacific (NYSE:UNP) and Norfolk Southern (NYSE:NSC). These requests are somewhat standard for Buffet given his widespread notoriety, but still led to much speculation as to his plans for the companies. Railroads have become a target for many investors as many remain substantially undervalued.

In the end, Warren Buffet's list of holdings continue to have an impact on investors. Watching Berkshire Hathaway's Schedule 13F/HR and Form 4s can be extremely useful in tracking the activity of the famous investor. You can setup free email and RSS alerts to track his holdings and more at SECFilings.com!

Unisys Corporation (NYSE:UIS) is set to move higher today after MMI Investments filed to boost its stake in the company above 10 percent but not more than 15 percent. The Hart Scott Rodino Antitrust Act required the activist hedge fund to seek permission before making its purchase, which gives investors a chance to jump on the opportunity.

Unisys is a worldwide technology services and solutions company whose consultants assist clients with general consulting, systems integration, outsourcing, infrastructure, and server technology. The company's stock is currently trading at $7.53 slightly off of its 52-week high earlier this year of $9.70.

A glance at the financials shows that the company is trading slightly below enterprise value with a P/E multiple of 17x - below the industry's 24x. It is also worth noting that the company has approximately $520 million - or $1.49 per share. This has led to speculation that MMI may be interested in unlocking value for shareholders through a special dividend or share repurchasing using the company's substantial amount of cash.

Unfortunately, the company faces negative quarterly growth, a paltry 1.78% ROA and a -19.83% ROI. These numbers point to a company that is struggling to operate cleanly and efficiently and that is also facing problems extracting revenues from its customers. As a result, MMI may have to work to help the company turn itself around before any value can be had from the company's pile of cash. However, this situation is definitely one worth watching!

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Metromedia Inc. (OTC:MTRM) shares rose marginally today after Fursa reiterated its plee that shareholders refrain from tendering their shares to an existing $1.80 per share buyout offer because they are planning on offering $2.05 per share - a 14% premium. Here is a copy of their letter:

Dear Metromedia Stockholder:

We at Fursa Alternative Strategies (“Fursa”) would like to take this opportunity to reiterate our proposal to acquire Metromedia International Group, Inc. (“Metromedia”) for $2.05 per common share. Our due diligence process is well under way, and we anticipate finishing shortly.

We strongly urge all Metromedia stockholders NOT to prematurely tender their shares, and that those who have tendered withdraw their shares until Fursa can complete the due diligence and finalize its offer. If CaucusCom Ventures L.P. and CaucusCom Mergerco Corp (“CaucusCom”) receive fewer shares than required to satisfy the Minimum Condition (as defined in the merger agreement), they are required to extend their tender offer under the terms of the merger agreement, and cannot terminate the merger agreement. Holding your shares will provide Fursa with the opportunity to complete its due diligence process, and it will provide you with the opportunity to review all information regarding Fursa’s superior $2.05 per share cash proposal.

Fursa’s proposed tender offer is superior to the offer from CaucusCom, in that Fursa’s proposal of $2.05 per common share represents a 14% premium over CaucusCom’s $1.80 per share cash offer, while keeping all other terms and conditions, including, without limitation, the same structure (tender offer with a backend merger), representations, warranties, covenants and conditions.

Furthermore, Fursa is highly confident in its ability to obtain the necessary financing for a transaction.

Thank you very much for your support. We look forward to finalizing our offer soon.

Sincerely,

William F. Harley, President

Clearly shareholders stand to benefit if Fursa is successful in either succeeding in its own $2.05 bid or forces the other bidder to up their bid. This makes MTRM a stock worth watching!

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