In an effort to eliminate Northwest’s shareholding, Pinnacle Airlines Corp. purchased 2,492,060 shares of its outstanding common stock from Northwest Airlines Corp. at a purchase price of $13.22 per share, for total consideration of $32,945,033. With the sale, Northwest is no longer a holder of any of the company's common stock although it retains the Company's Class A Preferred Share, which the company has agreed to purchase from Northwest in January 2008. Northwest cited the new airline services agreement between the two carriers for the sale. It said the new agreement eliminated the necessity for the mainline carrier to retain ownership interest. It also said it can now redeploy that capital for other Northwest needs.
With the completion of this transaction, Pinnacle has repurchased 4,450,092 shares of its common stock since authorizing a stock repurchase program in May 2007, reducing the total outstanding shares by approximately 20 percent.
"Completing this stock repurchase is beneficial for both Pinnacle and Northwest," said Philip H. Trenary, President and Chief Executive Officer. "We have purchased these shares at a discount to current market prices, benefiting our remaining shareholders. In addition, this transaction provides a means for Northwest to efficiently monetize its holdings in Pinnacle without significantly impacting the market for Pinnacle's common stock."