The Midwest Airlines drama is over for the time being.
After a week of offers and counter offers, debate and doubt, the deal is done, pending shareholder and government regulatory approval.
The Milwaukee Journal Sentinel:
TPG Capital/Northwest Airlines Corp. won, AirTran Holdings Inc. lost and Midwest Airlines will keep its name, identity and independent status, after reaching a sale agreement with TPG Capital Thursday night.
TPG Capital, with financial backing from Northwest, will pay $17 a share for Midwest Air Group Inc., operator of Midwest Airlines, known for its baked-on-board chocolate chip cookies and wide seats, as well as regional carrier Midwest Connect.
...TPG Capital, an investment firm based in Fort Worth, Texas, raised its offer to $17 a share after rival AirTran this week submitted an offer of $16.25 a share. That AirTran offer, in turn, had trumped TPG Capital's $16-a-share offer that Midwest Air announced Sunday it would pursue.
That pursuit is now over, with the sale agreement signed, Hoeksema said. And while AirTran could still make another offer prior to the sale being finalized, the Orlando, Fla., airline indicated that wouldn't be happening.
"We accept the Midwest board's decision," AirTran Chairman and CEO Joe Leonard said.
"We sought to acquire Midwest because we believe joining the two airlines would have created a unique, efficient, truly national low-cost carrier with tremendous benefits for shareholders, communities and employees," Leonard said in a statement. "We hoped the Midwest board would come to share our vision and reach a consensual agreement - just as a majority of Midwest shareholders recognized the value in our strategic plan."
TPG Capital, along with sweetening its bid, had the advantage of presenting an all-cash offer, Hoeksema said.
I think TPG Capital's offer was better -- all cash and at least claiming to be on board with Midwest's strategic plan.
The question is: How long will the cookies stay?
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