Spirit will continue to pursue a merger with Frontier instead of JetBlue
by Emma Roth from The Verge - All Posts on (#5YSKA)
Spirit's deal with Frontier will make the combined airline the fifth largest in the US. | Photo by Joe Raedle/Getty Images Spirit Airline's board of directors has rejected JetBlue's bid to acquire the airline and will proceed with its existing merger agreement with Frontier, one of its ultra-low-cost competitors, Spirit announced in a press release. A deal with JetBlue has a low probability of receiving antitrust clearance" and poses an unacceptable level of closing risk" to its shareholders, Spirit notes.
After Frontier first announced its plans to buy Spirit in a cash and stock deal valued at $2.9 billion in February, JetBlue followed up with an all-cash offer of $3.6 billion last month. The airline even offered to throw in a $200 million breakup payout in case antitrust issues prevented the deal from going through. Despite all this, Spirit still...