AirTran extends deadline for Midwest to April 11
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Thu, 08 Mar 2007 09:25:00 GMT |
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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.
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