(Spirit) Spirit Airlines says JetBlue’s offer does not constitute a “superior proposal,” and will instead consider a merger with Frontier Airlines.
Spirit Airlines says that its board, together with outside advisors, determined that the proposed deal with JetBlue cannot be reasonably consummated.
The company said that an extensive review of the JetBlue offer showed that the deal involves an unacceptable level of closing risk that would be borne by its shareholders.
The budget airline believes that a potential deal with Frontier is superior and offers the best value maximization for its shareholders.
Under its deal with Frontier, Spirit equity holders are expected to get 1.9126 shares of Frontier and an additional $2.13 in cash for each existing share they own.
Spirit says it will continue to pursue the deal with Frontier with the intent to have the deal closed in the second half of the year.
SAVE is down -7.67% on premarket, ULCC -1.04%, JBLU is up +0.36%
