Today, AirTran Holding Inc. (NYSE: AAI) said it is making a $11.25 offer for Midwest Air Group Inc. (AMEX:MEH).

Great, huh? Not to Midwest, which rejected the overture. Yet, Wall Street is certainly not convinced. The stock price is up 22% to $11.15. In fact, it looks like the bid may go higher and other suitors may jump in.

Basically, as the major carriers engage in consolidation, it makes it even tougher for small players like Midwest Air and AirTran. So, why not bulk-up as much as possible and perhaps even sellout to a bigger player? It's becoming a quick game of Pac Man.

Moreover, the combination makes a lot of sense. With regulatory scrutiny not too onerous, there should be $60 million in costs savings.

But, according to a letter by Midwest's CEO, there appears to be no interest in a link-up. According to him: "While the Board has a great deal of respect for AirTran and for your leadership, it has concluded that it would not be in the best interests of the Company, our shareholders and other stakeholders, including customers, employees and the communities we serve, to pursue a transaction with AirTran under the current circumstances. The Board feels that the Company's strategic plan and remaining independent hold the best promise for continued growth and increased shareholder value going forward."

Then again, a higher price may make things easier, right? Shareholders will probably agree. In other words, expect a deal to get done.

Tom Taulli is the author of various books, including the Complete M&A Handbook and operates DealProfiles.com.