Midwest Airlines will hold takeover talks with AirTran – and others

Midwest Air Group, the parent of Midwest Airlines, said last week it will form a committee to explore its strategic alternatives in the face of an ongoing hostile takeover bid from AirTran Airways. Midwest shareholders recently voted to pursue the AirTran offer, although Midest’s board approval would be required to make it happen under Wisconsin law, and the board has been resisting it. The nine-member Midwest board includes three newly elected members who were nominated by AirTran. Midwest said its new exploratory committee will hold discussions with AirTran about the specifics of its proposal, but added that the group will also talk with other “strategic and financial parties” that have expressed interest in doing their own deal with the Milwaukee-based airline. Midwest did not identify who those parties might be.