AirTran Holdings Inc. announced today it has fired another shot in its hostile takeover attempt of Midwest Air Group Inc. by sending a letter to Midwest shareholders.
The letter is signed by Orlando, Fla.-based AirTran chief executive officer Joe Leonard and president and chief operating officer Bob Fornaro.
The letter urges shareholders to put pressure on the Midwest board of directors to accept AirTran's latest offer to acquire the Oak Creek-based parent company of Midwest Airlines for $13.25 per share, or $345 million.
"When you review AirTran's offer (also available at http://www.airtran.com/midwest/default.aspx), you will see that it not only provides you with a significant premium to Midwest's stock price before we made our offer public, but also that it offers you the upside potential of continuing to own shares in a combined AirTran and Midwest. We believe the merged company would be a stronger, truly national low-cost carrier offering a high quality product that would generate improved profit potential through a number of revenue and cost synergies. The combined carrier will be better able to succeed in an increasingly competitive environment; it would expand service in Milwaukee and Kansas City; and provide more low fares to more cities. We also expect the combined company to create more jobs and increase advancement opportunities for employees of both airlines, and increase the economic benefit of travel and tourism to the cities in which AirTran and Midwest currently operate," the letter stated.
The letter again criticizes Midwest's business plan, even though in their most recent quarters, Midwest posted a profit of $1.7 million, while AirTran lost $4.3 million.
To read the full letter, visit
http://pressroom.airtran.com/phoenix.zhtml?c=201565&p=irol-newsArticle&ID=951987&highlight=.
AirTran sends letter to Midwest shareholders
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