Midwest Air says sale delayed
(AP) - The sale of Midwest Air Group Inc. to a private equity firm has been delayed, the airline announced, because antitrust regulators want more information on the deal.
The Milwaukee-based operator of Midwest Airlines said the U.S. Department of Justice has issued a second request for information on the sale to TPG Capital. The deal is under scrutiny because Northwest Airlines Corp. is a passive investor.
The second request for information delays completion of the sale, valued at about $450 million in cash, for at least 30 days, Midwest said in a news release late Thursday.
But the company said it will still go ahead with its special shareholders meeting to approve the sale on Oct. 30 in Milwaukee.
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Midwest agreed in August to be bought out by TPG for $17 a share in cash. It has about 26.6 million shares outstanding.
The TPG deal followed months of escalating offers from rival AirTran Holdings Inc., the Orlando, Fla.-based operator of AirTran Airways.
According to regulatory filings, Northwest is committed to paying nearly $213.3 million, or 47 percent of the deal, while TPG will pay the remaining 53 percent, or $238.1 million.
Northwest, which emerged from bankruptcy in May, has said it would not participate in Midwest's management.
Shares of Midwest fell 20 cents, or 1.23 percent, to $16 early Friday, while shares of Northwest were up 33 cents, or 1.71 percent, to $19.63.
(Copyright 2007 by The Associated Press. All Rights Reserved.)