Midwest Air investor would like to see higher offer from AirTran, says merger makes strategic sense

By Lisa Kerner

Charlotte, N.C., March 26 - Midwest Air Group Inc. investor Octavian Master Fund, LP does not believe AirTran Holdings, Inc.'s merger proposal reflects the full value of Midwest, according to a schedule 13D filing with the Securities and Exchange Commission.

However, "a combination of the two companies makes enormous strategic sense, may bring material synergies, and would significantly de-risk the enterprise for its shareholders," Octavian's Richard Hurowitz said in a letter to Midwest Air chief executive officer Timothy Hoeksema.

Octavian, beneficial owner of 1.202 million shares, or 5%, of Midwest Air's stock, would be more supportive of a materially increased offer from AirTran for the company, according to the filing.

On Jan. 11, AirTran said its wholly owned subsidiary Galena Acquisition Corp. began an offer to buy all outstanding shares of Midwest Air for $6.625 in cash and 0.5884 shares of AirTran common stock for each Midwest share.

AirTran had previously proposed an $11.25-per-share price in October, according to a news release.

Midwest is a Milwaukee-based provider of jet service to primarily business travelers.

AirTran is the parent company of AirTran Airways, a low-fare airline based in Orlando, Fla.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.