Midwest Air board to meet, consider alternatives

By Lisa Kerner

Charlotte, N.C., Aug. 15 - Midwest Air Group, Inc.'s board of directors will meet Aug. 16 to consider alternatives for the company, according to a news release.

The company said there can be no assurance that the board will reach a final decision or enter into any definitive merger agreement at the meeting.

No other details were provided in Midwest's release.

On Monday, AirTran Holdings, Inc. came back to the company with a new offer of a $16.25-per-share negotiated merger transaction.

AirTran's latest offer includes $10.00 per share in cash and 0.6056 of a share of AirTran common stock for a total value of some $445 million based on AirTran's closing stock price on Aug. 13.

Midwest previously announced it was pursuing a board-approved, $16.00-per-share, all-cash offer from TGP Capital, LP. Air Tran's final offer for Midwest at that time was $9.50 in cash and 0.5842 of a share of AirTran common stock, or about $15.75 per share.

TGP planned to finance its offer through contributions from its managed fund TPG Partners V, LP and partners including Northwest Airlines, which was a cause for concern for some shareholders.

Midwest is a Milwaukee-based provider of jet service to primarily business travelers.

AirTran is the parent company of AirTran Airways, a low-fare airline based in Orlando, Fla.

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