Riley calls for special meeting in campaign to oppose Mesaba, Northwest Airlines merger

By Lisa Kerner

Charlotte, N.C., Jan. 12 - Riley Investment Partners, LP and other MAIR Holdings, Inc. shareholders called for a special stockholders' meeting in opposition to Northwest Airlines Inc.'s proposed merger with Mesaba Airlines, a unit of MAIR, according to a schedule 13D filing with the Securities and Exchange Commission.

Specifically, Riley is seeking election of Bryant Riley, John Ahn and A. Aadel Shaaban to the MAIR board. Those in opposition are also seeking to amend MAIR's bylaws to fix the number of directors at 10 and to allow shareholders to fill vacancies on the board, among other items.

Riley Investment and shareholders named in the filing hold more than 1.1 million shares, or 5.7% of the outstanding common stock.

Earlier this month, Riley Investment said Northwest Airlines' proposed offer to acquire Mesaba Airlines in exchange for the allowance of Mesaba $145 million claim against Northwest is "grossly inadequate." The total value of the Mesaba estate is more than $300 million, according to Riley.

MAIR (Nasdaq: MAIR) closed at $7.35 on Jan. 12.

Riley also said in the release that it "will pursue all avenues" to prevent the transaction, including filing objections and pursuing litigation.

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