Low-cost carrier AirTran on Friday said it ended its takeover bid for Midwest Air, after Midwest accepted a higher cash offer from private equity firm TPG Capital.

AirTran on Thursday raised its cash-and-stock offer for Midwest by 2 cents to USD$16.27, which compared with a USD$17 per share cash offer, raised on Thursday by USD$1 per share, from TPG Capital.

TPG Capital's offer includes a minority, passive investment by Northwest Airlines, and is not subject to any debt financing.

AirTran said it had hoped to acquire Midwest because the merger of the two airlines would have created a national low-cost carrier. However, it said it did not need to merge with any other carrier to achieve its business goals, which include adding new markets and continued offering of low fares.