AirTran's bid to acquire and merge with
Midwest Air Group got a big boost June 14 when Midwest shareholders
elected to the airline's board three new merger-friendly directors
that had been nominated by AirTran.
Midwest's board
consists of nine directors, but in response to the vote the airline
said it had decided to let AirTran make a presentation to the board
regarding AirTran's proposal. The date for that meeting has not yet
been set.
"While we are
disappointed by today's results, we recognize that our shareholders
have spoken," said Timothy Hoeksema, Midwest's chairman and CEO.
"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 vote for board
directors came at the Midwest Air Group annual shareholder meeting
today in Milwaukee. Midwest said the preliminary election results
will be official when an independent inspector of election provides
a certified report of the results, which is expected June
26.
AirTran Chairman
and CEO Joe Leonard said the board vote results prove there is a
"strong desire" among Midwest shareholders "for Midwest to fully
and fairly consider the merits of a combination with
AirTran.
"We believe these
three new directors will bring a fresh, independent perspective to
the Midwest board and will encourage the board to fully explore its
strategic options, including sitting down with us to fully evaluate
how a merger with AirTran can provide greater value for the Midwest
shareholders, employees and customers," Leonard added.
To
contact reporter Andrew Compart, send e-mail to [email protected].