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, reiterating its recommendation to proceed with the planned merger with Frontier Airlines.
Spirit contends that a merger with JetBlue faces significant and likely insurmountable antitrust hurdles, primarily due to JetBlue's existing Northeast Alliance with American Airlines.
Spirit believes JetBlue's offer has "no realistic likelihood of obtaining regulatory approval" and that the proposed break-up fee does not adequately compensate shareholders for the risks and disruption.
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.
