Spirit rejects JetBlue's offer, saying it wants less lucrative deal with Frontier

[IronLionZion]

https://www.cnn.com/2022/05/02/investing/spirit-rejects-jetblue-offer/index.html

New York (CNN Business)Spirit Airlines said it will stick with its deal with Frontier Airlines, rejecting a more lucrative competing offer from JetBlue Airways.

The airline said it doesn't believe regulators would allow JetBlue to buy Spirit.

"We believe a combination of JetBlue and Spirit (SAVE) has a low probability of receiving antitrust clearance so long as JetBlue's Northeast Alliance with American Airlines (AAL) remains in existence," said a letter from Spirit to JetBlue released early Monday. "Given this substantial completion risk, we believe JetBlue's economic offer is illusory, and Spirit's board has not found it necessary to consider it."

JetBlue announced Monday that it was offering Spirit a $200 million break-up fee if the deal is not completed for antitrust reasons. But a spokesperson from Spirit said the company's board rejected the break-up fee offer, too.

In February, Spirit agreed to a deal with Frontier (FRNT). Despite the airlines referring to their proposed combination as a merger, it is Spirit shareholders who would be bought out, receiving a stock-and-cash deal valued at that time at $25.83 for each Spirit share. Given Friday's closing value of Frontier's stock, it is now worth a bit less — $22.42 a share.

In April JetBlue announced an all-cash offer of $33 a shares. It did not raise that offer price in what it referred to as an "enhanced" offer in its Monday statement, with the $200 million break-up fee being the primary addition.

This feels like a race to the bottom. I've been disappointed with JetBlue recently and their reviews have gotten worse this past year.

[Lucid Dreamer]

1. Thanx, ILZ.

This feels like a race to the bottom. I've been disappointed with JetBlue recently and their reviews have gotten worse this past year.

I just need a clarification here.
Were you disappointed with Jet Blue's service or with their stock performance?

[IronLionZion]

3. Their service. I don't own their stock

They've had lots of flight cancellations and stranded passengers.

[RandySF]

2. Garbage airlines

I know people want to save money, but all three of them really suck.

[DetroitLegalBeagle]

4. You don't even save that much anymore on them

ULCC's nickel and dime you for every little thing. By the time you figure in the extra cost for you checked bags, carry-on's, etc, you are nearing the cost of the economy ticket from United or AA or even Delta.

[Freddie]

5. I'm stuck with Frontier

It’s the only airline that flies direct Trenton to Palm Beach. Yes they charge for *everything*. I’ve learned to pack our carryons so we don’t need luggage. It’s only a 2.5 hour flight so I can live without food or water.