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 is urging its shareholders to reject JetBlue's tender offer, reaffirming its commitment to and recommendation for the pending merger with Frontier Airlines.
Spirit believes a deal with JetBlue faces significant and likely insurmountable antitrust regulatory hurdles, primarily due to JetBlue's existing Northeast Alliance with American Airlines, which is currently the subject of a Department of Justice lawsuit.
Spirit argues that JetBlue's offer does not adequately address the high completion risk or provide sufficient protection and compensation for Spirit shareholders during a potentially lengthy and uncertain regulatory process.
Spirit Airlines (NYSE: SAVE) is urging shareholders to reject the tender offer that JetBlue (NASDAQ: JBLU) proposed earlier this week to purchase all the outstanding Spirit shares.
In a statement, Mac Gardner, chairman of the board of directors for Spirit Airlines, said Spirit wants to march on with the Frontier deal.
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Michael Wildes holds a master’s degree in Logistics & Supply Chain Management, and a bachelor’s degree in Aeronautical Science, both from Embry-Riddle Aeronautical University. Previously, he worked at the university’s flight department as a Flight Check Airman, Assistant Training Manager, and Quality Assurance Mentor. He holds MEI, CFI & CFII ratings. Follow Michael on Twitter @Captainwildes.
