Spirit Airls Inc Stock Price, News & Analysis

JetBlue has proposed an enhanced offer of $33.50 per share in cash to acquire Spirit Airlines. This proposal includes a $350 million reverse break-up fee and the accelerated prepayment of $1.50 per share. The increased cash offer represents a 6.3% improvement over JetBlue's previous proposal and a 67.6% premium over Frontier's implied transaction value. JetBlue aims to create a robust national competitor to major airlines, benefiting customers and stakeholders.

Spirit Airlines (NYSE: SAVE) updated stockholders on June 14, 2022, regarding ongoing acquisition discussions with Frontier (NASDAQ: ULCC) and JetBlue (NASDAQ: JBLU). The Board of Directors is assessing a proposal from JetBlue received on June 6, while adhering to the existing merger agreement with Frontier. Both companies have equal access to due diligence information. An update for stockholders will be provided before the June 30 special meeting. Spirit continues to cooperate with regulatory authorities during this review process.

Spirit Airlines (NYSE: SAVE) has announced the postponement of its Special Meeting of Stockholders to June 30, 2022, at 9 AM ET. The delay aims to facilitate continued discussions between Spirit, its stockholders, Frontier Group Holdings (NASDAQ: ULCC), and JetBlue Airways (NASDAQ: JBLU). Spirit's Board has not deemed JetBlue's proposals as superior to the existing merger agreement with Frontier, maintaining its recommendation for stockholders to approve the Frontier deal. Financial advisors for Spirit include Barclays and Morgan Stanley, with legal counsel from Debevoise & Plimpton LLP.

JetBlue (NASDAQ: JBLU) aims to combine with Spirit Airlines (NYSE: SAVE) to create a competitive low-fare airline against major carriers. In a recent message, JetBlue reassured Spirit's employees about their future benefits and job security if the merger proceeds. JetBlue emphasized its commitment to higher pay, job growth across its network, and employee retention incentives. The airline also highlighted its strong culture and plans for fleet modernization. Challenges remain as the industry recovers from the pandemic, but JetBlue is optimistic about the merger's potential.

Spirit Airlines (NYSE: SAVE) has confirmed that it received an updated acquisition proposal from JetBlue Airways (NASDAQ: JBLU). The Spirit Board of Directors will evaluate this proposal alongside its existing merger agreement with Frontier, ensuring fiduciary duties to shareholders are met. Barclays and Morgan Stanley are acting as financial advisors, while Debevoise & Plimpton LLP and Paul, Weiss, Rifkind, Wharton & Garrison LLP provide legal counsel. Shareholders are advised to take no action at this time.

JetBlue has submitted an enhanced acquisition proposal for Spirit Airlines, offering stockholders a total of $31.50 per share, consisting of $30 at closing and a $1.50 prepayment. The proposal includes a significant $350 million reverse break-up fee, which is $100 million more than Frontier's offer. JetBlue emphasizes greater value, regulatory protections, and the urgency for Spirit’s Board to negotiate in good faith to secure the best offer for stockholders, amid a competitive landscape against Frontier.

JetBlue (NASDAQ: JBLU) has responded to the amended merger agreement between Spirit (NYSE: SAVE) and Frontier, emphasizing the conflicts within Spirit's Board. JetBlue claims its offer remains superior at $33 and urges Spirit to negotiate in good faith. The addition of a reverse termination fee by Spirit indicates a likely regulatory challenge for both transactions. JetBlue asserts both deals will face similar scrutiny, urging Spirit shareholders to demand a fair process. JetBlue remains committed to assessing the amended agreement's terms.

Spirit Airlines and Frontier Group Holdings have amended their merger agreement, introducing a reverse termination fee of $250 million in case the merger fails due to antitrust issues. This fee represents $2.23 per share for Spirit's shareholders, enhancing stockholder protections. Both companies' boards unanimously approved the amendment, which aims to solidify confidence in the merger’s strategic rationale and promote competitive pricing against larger carriers. The merger is expected to yield approximately $500 million in annual net synergies for Spirit shareholders.