- Frontier Airlines parent Frontier Group Holdings Inc ULCC commented on Spirit Airlines Inc.'s SAVE rejection of JetBlue Airways Corp's JBLU offer.
- "We are pleased that the Spirit Board of Directors has again reaffirmed its commitment to combining with Frontier, which increases competition by bringing more ultra-low fares to more travelers and delivering substantial shareholder value," stated Barry Biffle, President and CEO of Frontier.
- What Happened: Spirit Airlines, which agreed in February to merge with Frontier, rebuffed the JetBlue offer earlier today.
- Spirit Board unanimously recommends its stockholders not tender any of their shares into the JetBlue offer.
- Spirit does not believe that the JetBlue transaction will receive regulatory approval.
- Related: Spirit Airlines Shares Fly High As Bidding War Heats Up
- What's Next: Spirit Board continues to recommend stockholders vote FOR the merger agreement with Frontier.
- Once combined, Frontier and Spirit expect to deliver annual run-rate operating synergies of $500 million after full integration. Spirit shareholders will own approximately 48.5% of the combined company.
- Also Read: Don't Expect High Airfares To Go Soon, Frontier Airlines' CEO Believes.
- Frontier said it is working with Spirit to complete its merger and create a nationwide ultra-low fare airline to compete against the dominant 'Big Four' airlines and other high-cost airlines, including JetBlue.
- JetBlue's Response: JetBlue said it's no surprise that Spirit shareholders are getting more of the same from the Spirit Board. It urged Spirit shareholders to vote against the Frontier offer and tender their shares into its offer.
- Price Action: ULCC shares are trading higher by 4.93% at $9.91, JBLU higher by 4.13% at $10.33, and SAVE higher by 1.13% at $19.64 on the last check Wednesday.
- Photo Via Wikimedia Commons
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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