Shareholders File Suit on MEH Poison Pill

In the wake of AirTran boosting the price of its bid to take over Midwest Air Group to $345 million, a MEH shareholder filed suit to eliminate the provision the airline has in place preventing hostile takeovers. The poison pill allows MEH to issue more shares if one stockholder acquires at least 15 percent of the company. The suit was filed by Gregory Nespole, an attorney for Linda Garrett of Lufkin, Tex. In order for such a suit to be successful, experts indicate that proof of fraud would be needed. For its part, AirTran, last week, sent letters to MEH shareholders, outlining the bid and discussing why the two airlines should be joined.