To: All Midwest and Skyway Airlines Employees
Date: August 12, 2007
From: Timothy E. Hoeksema
Subject: Board of Directors Update #4
The Midwest Air Group Board of Directors today said that it has unanimously determined to pursue an all-cash offer from TPG Capital, L.P. on behalf of an affiliate of TPG and one or more partners to acquire all of the outstanding shares of Midwest for $16.00 per share.
The board took this action after receiving a letter from AirTran Holdings that stated the airline was making its best and final offer to acquire all of the outstanding shares of Midwest common stock at $15.75 per share, valued at Friday's closing price of AirTran's common stock. In reaching its determination, our board concluded that the TPG offer presented greater value and certainty for Midwest shareholders than the AirTran offer.
Under the terms of the offer from TPG, the private equity investor indicated that its acquisition "would permit the Company to continue its rich legacy as a leading provider of customer oriented quality air service." The board expects that Midwest and TPG will execute a definitive merger agreement no later than August 15, 2007.
TPG is one of the largest private equity investors in the world and the most experienced in the airline sector. It has invested in Continental Airlines, America West Airlines, Ryanair, Hotwire and Sabre with the goal of helping management teams build long-term value for stakeholders. TPG's offer to Midwest is set forth in a letter that was received by the Midwest board on August 12. The letter is attached at the end of this memo for you to read.
This announcement is sure to result in intense media coverage. I will again remind you that news coverage is often highly speculative. Be assured that we will inform you of any developments as there is news to report.
Posted by Tom on Monday, August 13, 2007
This was posted online, and I thought I'd re-post it here on The Airline Blog: