Here's something you could try, until someone else comes along with a better idea.
Take your text, then use Text > Convert to Paths and Modify > Combine Paths > Union.
Using the Scale tool (under the black selection arrow), increase the height of your letters.
Select the Reshape Area tool (in the Vector block) and set the diameter so that it's as wide as your text. Carefully reshape from the bottom center and top center.
Okay, so Heathrow came along with a better idea before I finished typing.
Also try this extension NN_Transform (http://www.adobe.com/cfusion/exchange/index.cfm?from=8&o=desc&event=productHome&s=5&exc=6)
It works only on paths, so convert yoyr text to paths first (text > convert to paths)