AirTran says it's time for Midwest to talk merger

By Lisa Kerner

Charlotte, N.C., June 12 - AirTran Holdings, Inc. called Midwest Air Group, Inc.'s stand-alone plan flawed in response to news that Midwest missed its targeted financial results for the second consecutive quarter as well as for the full year.

"The basis upon which Midwest's board of directors rejected our offer in December has materially and significantly changed for the worse," AirTran chairman and chief executive officer Joe Leonard said in a company news release.

"We call upon Midwest's management and board of directors, once again, to listen to their shareholders and enter into discussions with AirTran to effect a merger."

AirTran extended its tender offer for Midwest to midnight ET on Aug. 10 from June 8. The offer was originally slated to close on May 16.

As of June 8, shareholders agreed to tender more than 14.6 million shares, of 59.5%, of Midwest to Galena Acquisition Corp., AirTran's wholly owned subsidiary. Midwest's board must approve the acquisition.

On April 2, AirTran increased its buyout offer for Midwest to $9.00 in cash and 0.5842 of a share of AirTran stock - then worth $15.00 per share - from its original October 2006 offer of $11.25 per share.

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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