Spirit still prefers Frontier Airlines offer to JetBlue


Spirit Airlines’ board still backs Frontier Airlines’ $2.9 billion takeover bid for the airline, saying it has determined that the competing $3.6 billion bid from JetBlue is not a superior proposition

Spirit Airlines’ board still backs Frontier Airlines’ $2.9 billion takeover bid for the airline, saying it has determined that the competing $3.6 billion bid from JetBlue is not a superior proposition.

Last month, Spirit said that after discussions with financial and legal advisers, its directors believed JetBlue’s offer could “reasonably” prove to be the better of the two offers. But on Monday, the company announced it had determined that JetBlue’s offer “is not reasonably likely to be consummated.”

In a letter to JetBlue, Spirit Chairman Mac Gardner said JetBlue’s offer presented “an unacceptable level of closing risk” that shareholders would have to bear.

Spirit said its board continued to support the offer made by Frontier in February and saw it as the best way to maximize value. The airline expects to reach an agreement with Frontier in the second half of the year.

Shares of Spirit Airlines Inc. fell 7.5% before the market opened. Shares of Frontier Group Holdings Inc. fell slightly, while shares of JetBlue Airways Corp. increased slightly.

ABC News

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