Spirit Airlines rejects sweetened offer from JetBlue

Jun. 28, 2022 12:16 PM ETSpirit Airlines, Inc. (SAVE), JBLU, ULCCBy: Joshua Fineman, SA News Editor54 Comments

Spirit Airlines Jet

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  • Spirit Airlines (NYSE:SAVE) again rejected a sweetened bid from JetBlue as shareholders are set to vote on the Frontier (NASDAQ:ULCC) deal on Thursday. Spirit rose 2.1%, while Frontier gained 2.7% and Jetblue advanced 0.6%.
  • “The latest offer from JetBlue does nothing to address our Board’s serious concerns that a combination with them would not receive regulatory approval," Ted Christie, President and CEO of Spirit said in a statement.
  • The Spirit (SAVE) rejection comes after JetBlue(NASDAQ:JBLU) late Monday announced it's modifying its offer for the airline, adding a ticking fee and increasing a proposed reverse breakup fee. In the new offer, JBLU increased accelerated prepayment to $2.50 per share, structured as a cash dividend to Spirit shareholders "promptly" following a shareholder vote in favor of the deal.
  • JetBlue earlier Tuesday pointed out that proxy firm ISS late Monday put out an updated report that ISS clients may find the modified JetBlue proposal “preferable” to the Frontier(ULCC) offer for Spirit (SAVE), according to a statement. Given short time frame before the holder vote, ISS can't officially make a recommendation, but instructs clients on how to change their votes.
  • In addition, Bloomberg reported that Spirit Airlines (SAVE) holder TIG Advisors indicated it plans to vote against its proposed offer. In a letter seen by Bloomberg, the firm stated its belief that the JetBlue (JBLU) offer is “far superior” and “eliminates execution risk and maximizes certainty of value.”

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