Buyout for Spirit Airlines is Down to the Wire with JetBlue Vs. Frontier
Jun 29, 2022 By MarketDepth
Spirit Airlines shareholders will vote Thursday on Frontier Airlines’ offer but it is becoming extremely difficult to choose as JetBlue Continually sweetens its offer for takeover.
Frontier Airlines first put in an offer back in February but has been competing with JetBlue on the buyout offer. Frontier is pushing for a cash and stock deal but JetBlue is sticking with its all-cash offer. JetBlue turned up the heat in April with its all-cash offer which sparked a bidding war for Spirit Airlines.
If on Thursday the shareholders will vote in favour of the Frontier Airlines offer then it would create a coast to coast budget airline that would dominate the USA. The flip side is if they do not vote for the deal with Frontier then it opens the door for JetBlues takeover offer.
“JetBlue does not have many options to achieve a step-change in growth, and that explains why JetBlue has pursued this deal so doggedly.”Samuel Engel, aviation consultant at ICF