Midwest says accepts $17/shr offer (Airtran backs off)

Midwest says accepts $17/shr offer from TPG Capital
Fri Aug 17, 2007 12:34AM EDT

NEW YORK, Aug 17 (Reuters) - Midwest Air Group (MEH.A: Quote, Profile, Research) on Friday said it accepted a $17 per share offer from private equity firm TPG Capital, LP to acquire the company, ending a bidding war for the airlines that also included AirTran Holdings (AAI.N: Quote, Profile, Research).

Midwest said TPG's all-cash offer, for about $450 million in total, was superior to AirTran's $16.27 per share cash-and-stock offer.

Midwest said its board had approved the TPG takeover after considering both the private equity firm's and AirTran's "best and final" offers, after revised bids were received from both parties on Aug. 16.

Midwest said it expects the sale to close in the fourth quarter.

Under the agreement, Northwest Airlines (NWA.N: Quote, Profile, Research), as previously announced, will be a passive investor.

The deal is not subject to any debt financing conditions, but is subject to shareholder and regulatory approvals.