The unemployment rate increased in 23 states in September, with 43 reporting job losses for the month (though not at an accelerating rate). This does signal that we're (hopefully) in the early stages of an economic recovery ... though this can also mean that some job seekers have just given up (and are no longer counted).

Layoffs have slowed down a bit, but companies aren't crazy about taking on new bodies. So far, 600,000 people have dropped out of the hunt. Unemployment now sits at 9.8%.

If you took a driving trip through the Midwest during the summer, chances are you, and several hundred thousand others, stopped at one of almost 1400 Casey's General Stores Inc. (NASDAQ: CASY) to refuel both car and driver. On Sept. 5 Casey's reported record earnings for 1Q FY 2008, which ended on 31 July, and did it through real growth in both sales and income. Casey's, despite having a goal of acquiring 50 new locations by the end of the year, actually acquired none during the quarter. Casey's has its priorities in the right order in terms of cost control. Senior management does not let operating expenses increase by any percentage amount greater than the percentage increase in gross profits.

Total sales of both gasoline and food were up 17% to $1.3 billion. Most of this amount came from increases in food and beverage sales, which were up 15% to $260 million for packaged food items and cigarettes and $75 million for fresh pizza and sodas.

Oddly, gasoline sales were up imperceptibly, not even half a percent, in terms of volume. But as many of us have suspected, the profit margin on gasoline has increased, in this case to 15.8 cents per gallon, compared to 9.8 cents per gallon in the summer of 2006. Casey's is still expanding its presence throughout the nine state Midwest region. Casey's continued to show strong sales during August as well, with gasoline sales up 1% but food, groceries and general merchandise up almost 12% in same store sales. Clearly, Casey's has the right product mix at the right prices for tis customers. Casey's recently announced a quarterly dividend of $0.065 per share. The stock currently trades just under $29.00, and seems a good bet to appreciate in price without much downside risk.

Midwest Air Group (NYSE: MEH) agreed last week to be acquired by TPG Capital, and CEO Tim Hoeksema relieved investors concerned about its independence by proclaiming, "The cookies stay." The move closed the door on AirTran's (NYSE: AAI) two-year hostile takeover attempt, but reports have now emerged that could allow Northwest (NYSE: NWA), the "passive investor" in the acquisition, to actually own Midwest outright one day.

TPG partner Richard Schifter is quoted by The Associated Press saying "The equity firm may want to cash out of the deal some day, and Minneapolis-based Northwest could become the sole owner." Schifter told the Kansas City Business Journal that a potential acquisition of Midwest by Northwest would be "several years out and isn't anything we expect in the near future."

The potential for Northwest to acquire Midwest one day has definitely ruffled some feathers in the region. The Milwaukee Journal Sentinel said in an editorial that TPG's recent conference call with reporters was "not encouraging" and that questions remain, including if Midwest could survive in the business. The Journal also questioned how "passive" Northwest's relationship with Midwest will be in the future, especially with its "spotty service record."

TPG Capital has a history of working with airlines. Since the main purpose for private-equity companies is to make a profit on their investments, it is only logical to think that Northwest could one day own Midwest outright. It's also possible that TPG could sell the company to AirTran years down the tarmac. Either way, the cookies are safe, for now.

Those were the words from Midwest Airlines (AMEX: MEH) CEO Tim Hoeksema after he announced late last night that Midwest has made a decision, according to the Milwaukee Journal Sentinel. After four hostile attempts from AirTran Holdings (NYSE: AAI) and nearly two years of rejection, Midwest Airlines has finally agreed to be acquired -- by TPG Capital for $450 million.

Hoeksema is expected to remain at the CEO of Midwest. Under AirTran's ownership, he would have been forced to resign.

Midwest Airlines will get to keep its name, identity and independent status with the sale to TPG Capital, as well as the cookies.

AirTran Holdings (NYSE: AAI) made another bid for Midwest Air Group (NYSE: MEH) today, pushing to total up to $445 million. The new cash-and-stock offer of $16.25 bid surpasses the $16-a-share cash offer made TPG Capital and Northwest Airlines (NYSE: NWA) on Sunday and is 50 cents higher than their previous last-ditch effort on Sunday, hours before the Midwest Board said it would pursue a rival bid.

This is the fourth time AirTran has raised its bid for Midwest since December. Despite AirTran receiving support from nearly 63% of Midwest shareholders, management refused to relinquish control to the Orlando-based discount airline. Midwest's Board said it would "take AirTran's revised offer under consideration."

While the Board deliberates, let's take a look at exactly what would happen to Midwest if they were to be acquired by either AirTran or TPG/Northwest:

• AirTran wants to rebrand the airline under its own name and integrate Midwest's operations into its broader network.

• Under the TPG offer, Midwest would maintain its brand name and its current management. Northwest, a company that has had nothing but problem after problem since it emerged from bankruptcy earlier this year, would not participate in the management or have any direct control over Midwest. Instead, Northwest hopes to explore cost reduction strategies like joint fuel purchasing.

AirTran President Bob Fornaro said the Midwest Board is required to not only consider the price of a takeover offer but also the effect on employees and the community, according to USA Today. But what about the shareholders? A total of 63% of Midwest shareholders were willing to side with AirTran after a $15.75 offer, and now the offer has been improved to $16.25. It seems pretty clear who the shareholders want to be with.