Spirit still prefers bid from Frontier Airlines over JetBlue

By AP News

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Spirit Airlines' board still supports Frontier Airlines' $2.9 billion takeover bid for the airline, saying it determined JetBlue's competing $3.6 billion offer isn't a superior proposal.

Spirit Airlines' board still supports Frontier Airlines' $2.9 billion takeover bid for the airline, saying it determined JetBlue's competing $3.6 billion offer isn't a superior proposal.

Last month Spirit said that after speaking with financial and legal advisers, its directors believed JetBlue’s offer could “reasonably” turn out to be the better of the two deals . But on Monday the company announced that it was determined that JetBlue's offer “is not reasonably capable of being consummated."

In a letter sent to JetBlue, Spirit Chairman Mac Gardner said that JetBlue's bid had “an unacceptable level of closing risk" that shareholders would have to take on.

Spirit said its board continues to back the bid made by Frontier in February and views it as the best way to maximize value. The airline anticipates a deal with Frontier closing in the second half of the year.

Shares of Spirit Airlines Inc. fell 7.5% before the market open. Shares of Frontier Group Holdings Inc. declined slightly, while JetBlue Airways Corp.'s stock edged higher.

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Author: AP News

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.

Originally published by Associated Press Valuethemarkets.com, Digitonic Ltd (and our owners, directors, officers, managers, employees, affiliates, agents and assigns) are not responsible for the content or accuracy of this article. The information included in this article is based solely on information provided by the company or companies mentioned above.

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