Spirit Airlines reiterates support for Frontier merger, rejects JetBlue offer

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Spirit Airlines Inc.’s board SAVE, -10.17% on Monday reiterated its support for its proposed merger with Frontier Group Holdings Inc. ULCC, -3.82% and said it has unanimously determined that a competing bid from JetBlue Airways Corp. JBLU, -0.27% does not constitute a “superior offer.” “Spirit continues to believe in the strategic rationale of the proposed merger with Frontier and is confident that it represents the best opportunity to maximize long-term shareholder value,” Mac Gardner, chairman of the Spirit board, said in a letter to JetBlue. “After a thorough review and extensive dialogue with JetBlue, the Board determined that the JetBlue proposal involves an unacceptable level of closing risk that would be assumed by Spirit stockholders.” The low-cost airline entered a merger agreement with Frontier on Feb. 7, agreeing that Frontier would offer shareholders 1.9126 shares and $2.13 in cash. The deal is expected to close in the second half. In April, JetBlue waded into the deal with an all-cash offer at $33 a share, valuing Spirit at $3.6 billion. Spirit shares were down 1.5% premarket, while JetBlue was down 0.1% and Frontier was down 0.9%.

This article was originally published by Marketwatch.com. Read the original article here.

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