AirTran Holdings Inc., Extends Midwest Air Tender Offer

ORLANDO, Fla., May 17 - AirTran Holdings, Inc. (NYSE: AAI), the parent of AirTran Airways, today announced that the company is extending its latest tender offer of $15 per share of Midwest Air Group (Amex: MEH), until June 8, 2007. As of the close of business on May 16, 2007, shareholders have agreed to tender more than 13.9 million shares of Midwest to Galena Acquisition Corp., a wholly owned subsidiary of AirTran, which represents more than 56.6 percent of all outstanding shares of Midwest Air Group.

"We are extremely pleased with the response we are seeing from Midwest's shareholders, including the largest institutional investors," said Joe Leonard, AirTran Airways' chairman and chief executive officer. "Currently valued, based on recent market prices, at nearly $16 per share, our tender offer has been gaining momentum over the last thirty days, even without the mailing of our proxy materials, which will include the latest version of our offer to exchange as filed with the SEC."

"We view the significant level of tenders to date as a ringing endorsement of the business plan we have put together to drive economic development in the Greater Milwaukee area by adding jobs and increasing flight service out of General Mitchell International Airport. In fact, we would expect Midwest's management to take this as a serious vote of no-confidence in Midwest's risky go-it-alone plan and a clear message from Midwest's shareholders to meet formally with AirTran to discuss the terms of a merger agreement with the goal of combining the two airlines without waiting for the results of our proxy contest."

"We are pleased to note that in its cover letter to its shareholder proxy Midwest has called the board of director contest a 'decision that will affect ... the future of Midwest Airlines' -- a choice between the incumbent directors committed to 'preserving your company' or candidates backed by AirTran who may 'try to sell your company.' We agree with Midwest that the shareholders should decide what they want for their company. Let the shareholders decide and since it has offered that choice, let Midwest respect and act on that choice."

On April 2, 2007, AirTran increased its buyout offer for Midwest Air Group to $15 per share for all of the Midwest shares, a total of $389 million. The offer, at such valuation, represents a premium of 83 percent over the 30-day average closing price of Midwest common stock prior to when AirTran made its initial proposal. AirTran's first offer to acquire all of Midwest's common stock was priced at $11.25 per share on October 20, 2006. The offer, at such valuation, also represents an approximately 65 percent premium over the closing price of Midwest stock on December 12, 2006, the day before AirTran disclosed its initial October 20, 2006, offer. As a result of Midwest management's continued refusal to take necessary steps to achieve a combination of companies, the original expiration date of the tender offer has been extended to terminate on June 8, 2007.

Source : Equity Bulls

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