Spirit rejects JetBlue offer, says it wants to be bought by Frontier
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.
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“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.
In February, Spirit agreed to be purchased by Frontier in a stock-and-cash deal valued at the time at $25.83 per share per share.
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In March, JetBlue announced an all-cash offer of $33 per share. In its Monday statement, it did not increase the offer price in what it called an “enhanced” offer, with the $200 million breakup fee being the main improvement.
If Frontier’s purchase of Spirit goes through, the merged carrier would surpass JetBlue and Alaska Air in passenger miles flown, according to 2021 statistics. This would make it the fifth largest airline in the United States.
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