Sat, Aug 11, 2007
May Join Third-Party Bid To Purchase Carrier
The theatrics surrounding a
potential buyout of Midwest Airlines became a bit more dramatic
this week... as Northwest Airlines is reportedly considering a
passive stake in the airline, as part of a larger buyout bid.
The Wall Street Journal reported Friday the Eagan, MN-based
airline is mulling over the move, to protect its recent marketing
agreement with the smaller airline. An undisclosed source says
Northwest would have minority interest in Midwest, as part of
another as-yet-unnamed third party's bid to buy Midwest... and
thwart rival AirTran's efforts to do so.
As ANN reported last week,
after months of reluctance the board at Midwest agreed to consider
AirTran's buyout offer -- as well as proposals from any other
interested suitors. As many as four parties are reportedly
interested in the airline; the Milwaukee Journal Sentinel reported
Friday that Northwest is among the interested parties.
AirTran's current offer of $15-a-share is believed to be the
largest offer for Midwest so far. Airline spokesman Tad Hutcheson
stressed Friday AirTran doesn't plan to raise the bid... and
chastized Northwest for its apparent involvement in the
process.
"There is no strategic value [for Northwest] in Milwaukee, just
a defensive one," said Hutcheson. Northwest already maintains a
strong presence in Milwaukee, Midwest's home airport.
Redundant operations and fleet incompatibilities make
Midwest an unattrative candidate for a complete Northwest
takeover... which is why the airline is looking at a smaller
role.
Midwest unveiled plans for a broad marketing agreement with
Northwest in May, as part of its stand-alone plan to fend off
AirTran's takeover bid.
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