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...