("=Southwest Makes $170M+ Bid For Bankrupt Frontier Air," at
2:52 p.m. EDT, misstated the amount of Southwest's bid two weeks
ago, in the 2nd paragraph. The correct version follows:)
DOW JONES NEWSWIRES
Southwest Airlines Co. (LUV) announced its final bid for
bankrupt airline Frontier Airlines Holdings Inc. (FRNTQ), making a
binding offer of more than $170 million.
That is far higher than the $113.6 million price Southwest said
two weeks ago it intended to offer in the auction. That initial
interest was higher than the $108.8 million offer Republic Airways
Holdings Inc. (RJET) made in June.
The auction, which Southwest said is slated to begin Thursday,
comes 14 months after Frontier filed for Chapter 11 protection in
April 2008. The discount carrier has been seeking an investor to
help it emerge from bankruptcy.
Republic, Frontier's single biggest creditor, has provided $40
million in debtor-in-possession financing to Frontier. While
Republic would continue to have Frontier operate as is, Southwest
said after two years it would absorb the carrier into its
operations and replace its aircraft. Southwest said Monday that its
bid includes taking some 80%, or about 40, of Frontier's Airbus
planes.
A Republic spokesman acknowledged Southwest's offer and declined
further comment.
If it is successful, the takeover would give Southwest its first
international destinations. It will also make the carrier a
formidable foe to UAL Corp.'s (UAUA) in Frontier's home base of
Denver.
Southwest shares were recently down 2.3% at $8.90. Republic
dropped 3.5% to $5.73.
-By Kerry Grace Benn and Kevin Kingsbury, Dow Jones Newswires;
212-416-2353; kerry.benn@dowjones.com