Why Spirit Airlines Is Losing Altitude Today
Spirit Airlines (NYSE: SAVE) is sticking with a merger agreement with Frontier Group Holdings (NASDAQ: ULCC), even though JetBlue Airways (NASDAQ: JBLU) is offering a higher price. Investors appear to be disappointed, sending shares of Spirit down more than 8% on Monday morning.
The airline industry's ongoing merger saga took a fresh twist on Monday morning. While the outcome is still not totally clear, it appears there are limits to the amount rivals are willing to spend for Spirit Airlines. Spirit had originally agreed to be acquired by Frontier for about $24 per share in cash and stock, but earlier this month, Jet blue stepped in with an all-cash $33 per-share offer.
Image source: Spirit Airlines.
Source Fool.com
