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In a 13D filing on MAIR Holdings Inc. (MAIR), 5.3% holder Riley Investment notes having changed MAIR's filing status from 13G to 13D. Riley is concerned that MAIR is not receiving fair value for its subsidiary, Mesaba Airlines, in its negotiations with Northwest Airlines (NWACQ) over Mesaba's bankruptcy claim and possible acquisition. The firm said 4.56% holder Lloyd Miller and 1.8% holder Palmyra Capital share their concerns.

Riley believes the interests of the independent shareholders should be represented in the negotiation and approval of any such transaction. The firm claims Northwest, MAIR’s largest shareholder with approximately 28% of outstanding shares, has a clear conflict of interest in the negotiation process.

To ensure shareholders are treated fairly, Riley argues that any deal between Northwest and the company or its subsidiary should be approved by a majority of the company’s disinterested shareholders.

Riley also notes that there are currently three vacancies on the board, and it wants to enter discussions with the company in order to fill the open spots with its representatives.

MAIR Holdings and Northwest Airlines 1-Yr Charts
MAIR Holdings 1-Yr Chart 1-3-07 Northwest Airlines 1-Yr Chart 3-1-07

Source: Riley Investment Concerned MAIR Not Receiving Fair Value For Subsidiary Mesaba