AirTran extends deadline for Midwest to April 11
|
|
|
WASHINGTON (Reuters) - AirTran Holdings Inc. , the parent of AirTran Airways, on Wednesday extended the deadline for a second time for shareholders of Midwest Air Group to accept its hostile takeover bid.AirTran's $345 million stock and cash offer was due to expire on Thursday, but the company extended it until April 11 so Midwest shareholders can "receive all the information they need" to make a decision.The previous deadline by AirTran, a low-cost carrier that made its initial bid in December, was February 8. The company did not sweeten its offer when it extended it to April.AirTran also submitted preliminary proxy materials to the U.S. Securities and Exchange Commission nominating three directors to the Midwest board and urging Midwest hold a shareholder meeting to elect them.AirTran hopes the move will "send a strong signal" about its intent to maximize shareholder value and help the merger proposal "get a fair hearing the boardroom."Milwaukee-based Midwest has resisted the proposal and on Wednesday had a powerful hometown politician come to its aid in Congress.U.S. Sen. Herb Kohl, a Wisconsin Democrat and chairman of the Senate Judiciary Committee's antitrust subcommittee, received a commitment from the Justice Department's top antitrust official to review any new information from Kohl's staff about any competition concerns."I remain open to considering any relevant information," Assistant Attorney General Thomas Barnett told reporters after a hearing chaired by Kohl on overall corporate antitrust matters.Last month, the Justice Department closed its mandatory review of the takeover bid's potential impact on competition without challenging it. But Kohl said the review was cursory and raised questions about service quality if the deal went through."DOJ's antitrust division did not initiate the full follow up investigation that most in the industry expected," Kohl said.The Justice Department has the power to revisit an antitrust investigation but rarely overturns its decisions.Richard Magurno, counsel for Atlanta-based AirTran, told Reuters there are no antitrust issues if the airlines' route systems were combined."There is virtually no overlap. If this merger presents antitrust issues in the airline industry then there are no two airlines that could merge," Magurno said.Midwest officials could not be immediately reached for comment.
(c) Reuters 2007. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.
|
|
|
|
|
|
Related News
Five more US bank failures bring total for 2009 to 120
New York - Bank failures in the United States have risen to 120 this year as five more regional institutions were added to the list, the US agency that guarantees the safety of bank deposits said. United Commercial Bank in San Francisco with assets o...
US stocks climb slightly despite double-digit jobless rate
New York - US stocks posted mild gains Friday to end the week as investors shrugged off government figures that put the unemployment rate above 10 per cent. The Labour Department said the jobless rate hit 10.2 per cent in the month of October, the hi...
US joblessness hits 10.2 per cent, highest in 26 years - Summary
Washington - The US unemployment rate surged to 10.2 per cent in October, the highest in 26 years as another 190,000 people lost their jobs, the Labour Department reported Friday. The figure comes after a 9.8-per-cent jobless rate in September and wa...
US joblessness jumps to 10.2 per cent, highest since 1983 - Update
Washington - The US unemployment rate surged to 10.2 per cent in October, the highest in 26 years, as another 190,000 people lost their jobs during the month, the US reported Friday. The figure reported by US Labour Department came after the 9.8 per ...
US jobless rate jumps to 10.2 per cent
Washington - The US unemployment rate surged to 10.2 per cent in October as another 190,000 people lost their jobs, according to US Labour Department figures released Friday. The jobless rate stood at 9.8 per cent in September. Unemployment had been ...
Bulls stop James, edge Cavs - Summary
Los Angeles - The King couldn't deliver in the clutch. Luol Deng and Joakim Noah combined to deny LeBron James a potential game-winning drive in the final seconds as and the visiting Chicago Bulls snapped the Cleveland Cavaliers' three-game winning...
Mortgage lender Fannie Mae posts nearly 19-billion-dollar loss
Washington - US mortgage lender Fannie Mae said Thursday that it would seek 15 billion dollars in federal aid, after posting its ninth consecutive quarterly loss. Fannie Mae reported a net loss of 18.9 billion dollars in the third quarter of 2009, co...
|
|
|
|
|
|
|
|
