Midwest Airlines Accepts Takeover Offer

After months of speculation regarding a takeover, Midwest Airlines has agreed to an offer - and it's not from Air Tran.

According to a press release from Midwest Airlines on August 16, an offer of a merger was accepted. The company involved is TPG Capital which has been involved with Northwest Airlines.

Midwest Airlines noted that the merger agreement to be acquired by an affiliate of TPG Capital is valued at approximately $450 million. Each share, which was valued at just over $9 when Air Tran first put an offer on the airline, can be converted into $17 per share in cash.

According to the press release, "This is a significant milestone for Midwest," said Timothy E. Hoeksema, chairman and chief executive officer. "The agreement preserves the airline's status as Milwaukee's hometown airline and the popular Midwest Airlines brand for Midwest's loyal customers and employees."

The deal is set to be completed in the fourth quarter of 2007.