Pequot's Midwest stake takes off on hostile bid

Fri Jun 29, 2007



By Pete Gallo

Regional airline stock prices have remained pretty low to the ground in 2007 as a tailwind of much anticipated consolidation has yet to make its way onto Wall Street radar screens.

However, that hasn't stopped Art Samberg's investment team at Pequot Capital Management from buying a first-class ticket to play a possible merger between regional carrier Midwest Air Group and its repeatedly scorned suitor, Orlando, Fla.-based AirTran Holdings.

Since the start of the year, Pequot has purchased 1.5 million shares of Midwest Airlines, giving the hedge fund a 6% stake in the airline and making Samberg's shop the Oak Creek, Wisc.-based airline's biggest stakeholder, based on filings with the Securities and Exchange Commission at the start of the second quarter.

But a would-be AirTran-Midwest merger is starting to look like...

ISSN: 2151-1845 / CDC10004H

Register

By registering you will receive

  • A monthly newsletter on your specified areas of interest
  • A fortnightly update on the sector

Free Trial

Take a trial today and access

  • Performance news, fund launches, regulation changes and people moves
  • Profiles of fund managers, investors and distributors
  • Live league tables
  • Investor mandates


Popular Searches on HFI