In this week’s PBB, I wrote that I saw TPG’s deal for Midwest strictly as a defensive play on behalf of Northwest Airlines. This deal doesn’t signify a “trend” in regional consolidation. It didn’t even seem, on paper, to be that “cheap” of a deal — a requirement I once heard TPG partner Richard Schifter say was a necessary requirement of any potential TPG deal.

While it was clear this was the case — I was surprised to hear Schifter admit as much in this morning’s call on the deal.

Then again, that’s Ric. He’s not one to beat around the bush.

Schifter said this morning that the firm may eventually want to cash out of the $450 million deal and Northwest could acquire Midwest outright. But Schifter cautioned that could be several years out.

You can bet there is a side deal to this deal that protects whatever TPG has in the deal — and it’s got Northwest’s name written all over it.

TPG has nothing on the line here. They’ll be in the deal until Northwest pays them to get out, or a merger deal involving Northwest accomplishes the same thing.

Tickers: (NYSE:NWA), (NYSE:MEH)

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