Spirit Airlines: Why I Voted for the Frontier Merger
In February, ultra-low-cost airline leaders Spirit Airlines (NYSE: SAVE) and Frontier Group (NASDAQ: ULCC) agreed to merge to create the fifth-largest U.S. airline. However, JetBlue Airways (NASDAQ: JBLU) jumped into the fray two months ago, offering to pay a big premium to buy Spirit Airlines.
After about a month of discussions between the two companies, Spirit Airlines' board rejected JetBlue's overtures and reiterated its support for the Frontier merger. For the past few weeks, JetBlue has been lobbying Spirit Airlines shareholders to vote against the Frontier merger. Meanwhile, it has launched a hostile takeover attempt, going directly to Spirit shareholders with a $30 per share tender offer, which it recently increased to $31.50.
Image source: Spirit Airlines.
Source Fool.com
