AirTran bids again for Midwest Air

0 Comments | USA TODAY, August, 2007 | by Dan Reed

AirTran resumed its pursuit of Midwest Air on Tuesday with a new cash-and-stock bid topping the $16-a-share cash offer made Sunday by TPG Capital and Northwest Airlines.

Atlanta-based AirTran is offering $10 in cash and AirTran stock worth $6.25 for every share of Milwaukee-based Midwest. AirTran values its offer at $445 million.

On Sunday, AirTran dropped out of the bidding for Midwest, which it started in December. It pulled out rather than try to outbid Fort Worth-based TPG, the takeover firm headed by David Bonderman. Previously known as Texas Pacific Group, TPG has invested in several airlines since it took over a then-bankrupt Continental Airlines in the early 1990s.

Before Sunday, AirTran was offering $9.50 a share plus just over half a share...