Midwest Boardroom Battle Looms Over AirTran Bid
Published on: June 15, 2007
Midwest Airlines said that based on a preliminary review of the proxies voted at yesterday’s annual meeting, it appears that shareholders have elected three directors nominated by AirTran Holdings, Inc., which allows AirTran to take its battle for Midwest into the boardroom. For the first time, Midwest said its board will permit AirTran Holdings to make a presentation to the Midwest Air Group board regarding AirTran’s proposal. The board noted that it has made no determination to engage in negotiations with AirTran and no date for the session has been established. Timothy Hoeksema, Midwest’s chairman and chief executive officer, said that the election of directors constitutes a definitive action by shareholders.
“While we are disappointed by today’s results, we recognize that our shareholders have spoken,” Hoeksema said. “If today’s election says anything at all, it says that our shareholders want us to listen and that is what we intend to do. The board remains fully committed to creating value for Midwest shareholders.” Joe Leonard, AirTran’s chairman and CEO, called the election results an important victory for Midwest shareholders. Meanwhile, Midwest passengers continue to log their opposition to the merger with postings on www.savethecookie.com, a site launched by Midwest response to its passengers’ calls for a way to stave off takeover.
