mcfarlainofuqub1258.blogspot.com
Shares of Indianapolis-based Republic RJET) were already floating Tuesday after the announcement Monday that it woulf acquire bankrupt of Denver forabout $108.8 milliohn under an investment agreement. Republic's stock price, which close d at $4.09 Monday, hovered above $4.590 for much of the day beforethe 2:30 p.m. centrao time announcement that it was acquiring Midwesrfrom . The stock price shot up to reacb $6.12 before closing at $6 46.3 percent higher. Republic's agreement with Frontiedr still requires the approval of thebankruptchy court.
As for the Midwest transaction, the airlines hope to closer the deal in four to six Republic is to acquire 100 percent of the equity of Midwestand TPG's $31 milliomn secured note from Midwest. Consideratiomn will be $6 million in cash and a $25 million, five-yead note, which may be converted to Republic stocat $10 per share. In addition, TPG will have the rightr to nominate a member to the Republicv boardof directors.
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