Spirit Airlines will assess JetBlue's takeover bid against its proposed merger with Frontier.

Spirit Airlines said Thursday it would enter talks with JetBlue Airways over an offer to merge the two companies, a deal that threatens ...


Spirit Airlines said Thursday it would enter talks with JetBlue Airways over an offer to merge the two companies, a deal that threatens to spoil Spirit’s plans for a merger with Frontier Airlines.

In a statement, Spirit said it consulted with outside financial and legal advisers and determined that JetBlue’s offer could “reasonably” exceed the cash and stock agreement announced by Spirit and Frontier in February. JetBlue’s surprise offer this week surpassed Frontier’s initial offer.

“Spirit intends to enter into discussions with JetBlue regarding JetBlue’s proposal, pursuant to the terms of the company’s merger agreement with Frontier,” Spirit said in a statement.

Spirit noted Thursday that its board did not consider JetBlue’s proposal better than the Frontier merger and said the board’s earlier recommendation that shareholders adopt that merger still stands.

JetBlue’s Tuesday Deal, about $3.6 billion in cash, initially confused some analysts who questioned JetBlue’s assumptions about how easily it could subsume Spirit. The value of Frontier’s offer fluctuated with its share price, but it was worth about a third less than JetBlue’s offer using Monday’s share price.

In a statement, Robin Hayes, Chief Executive Officer of JetBlue, said: “We are delighted that Spirit’s Board of Directors recognizes the compelling value that JetBlue has delivered to all stakeholders. We believe JetBlue is the best partner for Spirit, and we look forward to engaging with the Spirit Board to finalize our combination, to create a low-cost domestic challenger to the big four dominant US carriers that will result in lower fares. and better service for customers.”

JetBlue and Frontier said a merger with Spirit would allow them to better compete with the country’s four dominant airlineswhich control about two-thirds of the domestic market.

Analysts widely view the Frontier merger as simpler, combining two budget carriers with strengths on opposite coasts. The JetBlue deal isn’t as clear cut, although some analysts see merit in the airline’s purchase of Spirit to accelerate growth plans that would otherwise be difficult to achieve.

Source Link

COMMENTS

Name

Africa,973,Americas,4395,Art & Culture,16280,Arts,6830,Arts & Design,1939,Asia,3622,Automobile,586,Baseball,857,Basketball,701,Books,4252,Business,5737,Celebrity,2631,Cricket,648,Crime,158,Cryptocurrency,2266,Dance,735,Defense,836,Diplomatic Relations,2496,Economy,1419,Editorial,260,Education,1532,Elections,308,Energy & Environment,3213,Entertainment,23744,Environment,4004,Europe,4589,Faith & Religion,234,Family & Life,817,Fashion & Style,3703,Finance,22158,Food & Drink,4180,Football,1326,Games,97,Gossip,10283,Health & Fitness,4530,Health Care,979,Hockey,288,Home & Garden,917,Humour,994,Latin America,49,Lifestyle,18703,Media,527,Middle East,1777,Movies,2069,Music,3008,Opinion,4230,Other,13376,Other Sports,5515,Political News,11322,Political Protests,2324,Politics,18948,Real Estate,2377,Relationship,106,Retail,3115,Science,3000,Science & Tech,11299,Soccer,395,Space & Cosmos,467,Sponsored,4,Sports,13726,Technology,3828,Tennis,751,Theater,1994,Transportation,313,Travel,2880,TV,4034,US,1646,US Sports,1481,Video News,3531,War & Conflict,1069,Weird News,996,World,18367,
ltr
item
Newsrust - US Top News: Spirit Airlines will assess JetBlue's takeover bid against its proposed merger with Frontier.
Spirit Airlines will assess JetBlue's takeover bid against its proposed merger with Frontier.
https://static01.nyt.com/images/2022/04/07/multimedia/07economy-briefing-airlines/07economy-briefing-airlines-facebookJumbo.jpg
Newsrust - US Top News
https://www.newsrust.com/2022/04/spirit-airlines-will-assess-jetblues.html
https://www.newsrust.com/
https://www.newsrust.com/
https://www.newsrust.com/2022/04/spirit-airlines-will-assess-jetblues.html
true
732247599994189300
UTF-8
Loaded All Posts Not found any posts VIEW ALL Readmore Reply Cancel reply Delete By Home PAGES POSTS View All RECOMMENDED FOR YOU LABEL ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS PREMIUM CONTENT IS LOCKED STEP 1: Share to a social network STEP 2: Click the link on your social network Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy Table of Content