mergers & acquisitions
mergers & acquisitions
Midwest Airlines to Go Private
An investment group that includes Northwest Airlines said it would buy Midwest Airlines for more than $400 million less than an hour after AirTran abandoned a two-year hostile takeover bid for Midwest.
The investors, led by TPG Capital, would convert Midwest to a privately held company. The TPG offer was superior to AirTran's and will let Midwest proceed with its goals, Midwest's general counsel said.
Seidman Ordered to Pay Bank
U.S. accounting firm BDO Seidman must pay a Portuguese bank $170 million plus still-undetermined punitive damages that may be three times that amount for failing to spot fraud at a now-defunct Florida company, a jury found.
Jurors in a state court in Miami returned the verdict in the trial's damages phase. Earlier, they found New York-based Seidman grossly negligent for failing to detect fraud at the financial company E.S. Bankest. Lisbon's Banco Espirito Santo, Portugal's third-biggest bank, sued Seidman for losses it suffered when Bankest collapsed.
$22 Million Sought From Black
Conrad Black must forfeit about $22 million in ill-gotten gains from fraud while chairman and chief executive of Hollinger International, U.S. prosecutors said in a court filing. Black and three other former Hollinger executives were convicted of fraud last month by a Chicago federal court jury after a four-month trial. Prosecutors say Black and two of the men are jointly liable for more than $16.9 million of the sum they seek and that Black should pay another $5 million.
Qwest Picks New CEO
Qwest Communications International named Edward Mueller chief executive to replace Richard Notebaert, who decided two months ago to retire from the telephone company. Mueller, 60, was once an executive at SBC Communications and chief executive at Williams-Sonoma. Notebaert leaves the company tomorrow.
TXU Lays Out Buyout Alternative
TXU said it may have to build up to 15 power plants and reduce costs by $800 million if its proposed $45 billion sale to a buyout group led by Kohlberg Kravis Roberts is not approved by shareholders on Sept. 7. TXU said those steps would be needed to match the premium the buyers agreed to pay above TXU's share price.