Deal May Join Midwest, Northwest
August 17, 2007
The private-equity firm TPG Capital says its proposed $450 million acquisition of Midwest Air could result in an eventual sale to Northwest Airlines.
Northwest is a minority partner in the deal for the small airline.
Rick Schifter, a TPG partner, said Friday a merger agreement was reached late Thursday, the Wall Street Journal reported. He said in a conference call that TPG sees several ways to cash out of Midwest, including a sale to Northwest or to the public.
He said however that may be years away.
Midwest’s board unanimously agreed to a sweetened, $17 a share, all-cash offer from TPG and Northwest, spurning a cash-and-stock bid valued at $16.27 a share from AirTran.