Bernstein Liebhard LLP announces investigation of acquisition of AirTran Holdings, Inc. by Southwest
27-Sep-2010 Bernstein Liebhard LLP is investigating whether the Board of Directors of AirTran Holdings, Inc. (“AirTran” or the “Company”) (NYSE: AAI) breached its fiduciary duty to its shareholders in agreeing to sell AirTran to Southwest Airlines Co. (“Southwest”).
Under the terms of the agreement, the transaction values AirTran common stock at $7.69 per share, or approximately $1.4 billion in the aggregate, including AirTran's outstanding convertible notes. Each share of AirTran common stock will be exchanged for $3.75 in cash and 0.321 shares of Southwest Airlines' common stock, subject to certain adjustments, based on Southwest Airlines' share price prior to closing. Including the existing AirTran net indebtedness and capitalized aircraft operating leases, the transaction value is approximately $3.4 billion. The investigation is focused on the potential unfairness of the price to AirTran shareholders and the process by which the AirTran Board of Directors considered and approved the transaction.
If you are interested in discussing your rights as an AirTran shareholder and/or have information relating to the matter, please contact Joseph R. Seidman, Jr. at (877) 779-1414 or seidman@bernlieb.com.