Spirit Airlines Rejects JetBlue Counter Offer Against Merger with Frontier

Consolidation among discount airlines has sparked a battle over Spirit Airlines as JetBlue tries to disrupt deal with Frontier.

Jonathan Welsh

Monday, May 02, 2022 at 05:53 PM ET

Verified

On Feb. 7, Spirit entered into a merger agreement with Frontier, under which Spirit and Frontier would combine in a deal for stock and cash. [File photo: Shutterstock]

Key Takeaways:

Spirit Airlines has rejected JetBlue's counter offer, stating it believes the proposed transaction is "not reasonably capable of being consummated" due to an "unacceptable level of closing risk."
Spirit's board expressed concerns over potential antitrust issues associated with JetBlue's bid, even after JetBlue offered a $200 million reverse breakup fee.
Spirit reaffirms its commitment to its existing merger agreement with Frontier Airlines, recommending shareholders adopt it as the best opportunity to maximize value.
The merger with Frontier Airlines is expected to close in the second half of 2022, pending regulatory review and shareholder approval.

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Spirit Airlines (NYSE:SAVE) has rejected a counter offer that JetBlue Airways (NASDAQ: JBLU) made last month to its planned merger with Frontier Airlines (NASDAQ: ULCC) because it believes “the proposed transaction is not reasonably capable of being consummated.”

Spirit said its board “continues to believe that the pending transaction with Frontier represents the best opportunity to maximize value and recommends that Spirit shareholders adopt the merger agreement with Frontier.”