Spirit Airlines Supports Merger With Frontier Airlines; Rejects JetBlue Airways' Sweetened Offer

(RTTNews) - Spirit Airlines Inc. (SAVE) has rejected JetBlue Airways Corp.'s (JBLU) sweetened offer and has backed its merger deal with Frontier Airlines, Inc.

Spirit Airlines on Tuesday reaffirmed its commitment to its merger agreement with Frontier Group Holdings Inc. (ULCC), parent company of Frontier Airlines. It also said that JetBlue's latest revised offer is still substantially below the potential $50 per share or more that could result from a merger with Frontier.

On Monday, JetBlue responded to Frontier Group's latest improved offer by sweetening its own bid, adding a monthly pre-payment of 10 cents per share between January 2023 and the deal's close. It also increased the breakup fee by $50 million to $400 million and a dividend to Spirit shareholders of $2.50 per share, up from a previous offer of $1.50 per share.

Earlier on Monday, Spirit Airlines received an open letter from Frontier Group noting that its latest takeover offer gives Spirit stockholders the opportunity to realize significant upside in excess of $50 per share, delivering superior value compared to JetBlue's proposal.

Spirit CEO Ted Christie said, "The latest offer from JetBlue does nothing to address our Board's serious concerns that a combination with them would not receive regulatory approval. That unsolved issue, combined with the fact that their offer is still substantially below the potential $50 per share or more of value that we expect will result from a merger with Frontier, affirms our analysis that our merger agreement with Frontier provides more value and certainty to our stockholders."

Christie continued, "While we have engaged with JetBlue for weeks and provided them a level playing field on which they could make their best offer, unfortunately they have now turned to scurrilous rhetoric instead of a substantive improvement in their offer. We are focused on proceeding with our agreement with Frontier, and we appreciate the continued support of ISS and Glass Lewis as well as the feedback from many stockholders who intend to vote in support of the transaction."