Spirit Says No to JetBlue Acquisition Offer, Again

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May 19. Spirit Airlines is asking its shareholders to reject a hostile bid by JetBlue to acquire the company and instead back its merger with Frontier Airlines.

It’s the second time in as many weeks that Spirit has rejected an offer by JetBlue.

The move comes after JetBlue on Monday announced a $30 per share tender offer to acquire Spirit’s outstanding shares. In a tender offer, an acquiring company approaches individual shareholders and offers to purchase their holdings at a premium. Spirit’s shares closed at $19.42 on Wednesday.

In rejecting the hostile bid on Thursday, Spirit laid out a number of its concerns, primarily related to regulatory approval and anti-trust matters. Analysts believe that JetBlue’s Northeast Alliance with American Airlines presents a major regulatory challenge for any deal with Spirit, though JetBlue has promised to divest itself of Spirit’s northeast assets — but not necessarily its own alliance with American — if it acquires the latter. Regulatory approval for Spirit’s deal with Frontier is also uncertain, but many believe it has better chances than the JetBlue one.

Source: The Points Guy

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123610cookie-checkSpirit Says No to JetBlue Acquisition Offer, Again