Midwest deal would give Northwest 47 percent of airline
kansascity.com
Northwest Airlines will own 47 percent of Midwest Airlines under its agreement to be bought by a Texas private equity firm.
That was one of the details released in the proxy statement filed today with the Securities and Exchange Commission by Midwest Air Group Inc. in its deal to be bought by TPG Capital for $17 a share.
Northwest will provide $213.3 million of the $451.4 million price-tag that Midwest’s board approved last month. The deal blocked a months-long effort by AirTran Holdings Inc. to acquire Midwest and create a national discount carrier.
TPG has said that Northwest will not have a representative on the new Midwest board.
Many airline analysts have noted that Northwest, based in Minneapolis, joined the TPG bid in order to keep AirTran from establishing significant operations in the upper Midwest.
Midwest is the second busiest carrier at Kansas City International Airport with 32 flights daily.
Midwest shareholders of record on Sept. 24 will get to vote on the TPG deal. A date for a special shareholders meeting on the sale has not been set. Airline officials said they expected the deal to close in the fourth quarter.
