Spirit Airlines Rejects Jetblue Offer, Backs Merger With Frontier Group

June 28, 2022

Spirit Airlines Inc on Tuesday rejected JetBlue Airways Corp's sweetened takeover offer and recommended that shareholders vote in favor of a merger with Frontier Group Holdings Inc at a meeting on Thursday.

JetBlue had on Monday included a ticking fee of 10 cents per Spirit share in its offer, raising the deal value to $34.15 per share, representing a 51% premium to Spirit's Monday closing price.

"The latest offer from JetBlue does nothing to address our Board's serious concerns that a combination with them would not receive regulatory approval," Spirit Chief Executive Ted Christie said in a statement.

Frontier's cash-and-stock offer was valued at $22.03 per share as of Monday's close.

Both JetBlue and Bill Franke-backed Frontier are locked in an intense bidding war for Spirit as they seek to create the fifth-largest airline that can take on the legacy players in the United States.

Shares of JetBlue and Frontier rose more than 3%, while Spirit was up about 2% in early trading amid a broader surge in travel stocks after China eased its quarantine rules.

Source: Reuters
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