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 shareholders to reject JetBlue's tender offer, reaffirming its commitment to proceed with the planned merger with Frontier Airlines.
Spirit believes the Frontier merger offers the best value for stockholders and is more likely to receive regulatory approval.
Spirit cites "substantial regulatory hurdles" for a JetBlue acquisition, particularly due to JetBlue's existing Northeast Alliance with American Airlines, which faces an antitrust lawsuit.
The Spirit board believes a JetBlue deal lacks a realistic likelihood of obtaining regulatory approval and that JetBlue's proposed break-up fee is insufficient.
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.
