Apparently AirTran isn't quite yet ready to give up on acquisition target Midwest Air, even though two days ago Midwest announced that it would go ahead with a deal led by TPG Capital. While the TPG offer was $16 a share, AirTran's latest offer, of $445 million in cash and stock, is valued at $16.25 a share. (Its old offer was $15.75 a share.) Midwest's board said earlier today that they would take the "revised offer under consideration".
Even though Midwest was expected to strike a formal agreement with the TPG-led group on Wednesday, AirTran might get its way in the end. Over half of Midwest shareholders were for the original AirTran deal, and Pequot Capital Management, the largest shareholder in Midwest, said today that they had "significant concerns" about a deal with TPG. Pequot's managing director said that in the long term, a deal with AirTran might be more valuable because the two airlines would be able to eliminate overlaps in their route networks - a move that would save a lot of money.
Apparently AirTran isn't quite yet ready to give up on acquisition target Midwest Air, even though two days ago Midwest announced that it would go ahead with a deal led by TPG Capital. While the TPG offer was $16 a share, AirTran's latest offer, of $445 million in cash and stock, is valued at $16.25 a share. (Its old offer was $15.75 a share.) Midwest's board said earlier today that they would take the "revised offer under consideration".
Even though Midwest was expected to strike a formal agreement with the TPG-led group on Wednesday, AirTran might get its way in the end. Over half of Midwest shareholders were for the original AirTran deal, and Pequot Capital Management, the largest shareholder in Midwest, said today that they had "significant concerns" about a deal with TPG. Pequot's managing director said that in the long term, a deal with AirTran might be more valuable because the two airlines would be able to eliminate overlaps in their route networks - a move that would save a lot of money.
2 comments:
After a hellish experience with AirTran today, I can only hope that they don't destroy Midwest by taking them over. I further hope that they either begin to train their employees to at least ACT sympathetic when breaking the standard bad news to passengers, or that they drown in their own incompetence, and leave the way clear for better run airlines.
** AIRTRAN CHARGED ME $40 FOR 1/2 INCH OF AIR **
I just got home from flying Airtran. This is pathetic:
Flying from Orlando back home to Chicago on 6/13. The woman at customer service said my bag was 62 1/2'; the limit was 62 inches. She said I was going to have to pay another $40 to check this bag. You see, the front pocktes (which were empty, so were holding air) were sticking out. She acknowledged this.
Note: This is the SAME bag I flew to Orlando with on Airtran; no issues at all.
She gave me the option of 'going to the store around the corner to buy tape to tape it down'.
She said this WITH A STRAIGHT FACE WITH A ROLL OF TAPE NEXT TO HER COMPUTER! I asked her if I could use that tape, she said 'No'. I went to the store around the corner - and NO TAPE.
I asked to talk to the Manager. I told the Manager that this was the same bag I brought on Air Tran on the way to Orlando. She said 'did they measure it?'. I replied 'I do not know, but I know it weighs less now'. She snipped back 'Thats not what I asked you. I asked you DID THEY MEASURE IT?'
By this time I was close to missing my flight so I had to pay $40 for 1/2 inch of a pocket holding air.
Congratulations Airtran! You made $40 and lost a customer for life.
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