Why Spirit Airlines Stock Is Losing Altitude Today
The two rival bidders for Spirit Airlines (NYSE: SAVE) continue to jockey for control of the discounter, but at least on Monday, it wasn't translating to a higher stock price. Shares of Spirit traded down more than 8% as investors bet that the lower bid for the company would win out in the end.
A six-month tussle between Frontier Group Holdings (NASDAQ: ULCC) and JetBlue Airways (NASDAQ: JBLU) is going down to the wire, and neither side is showing any sign of giving up. Frontier and Spirit announced plans to combine back in February, but in April, JetBlue stepped in with its own hostile offer at a higher price.
JetBlue is offering $33.50 per share in cash for Spirit, while Frontier has offered a combination of cash and stock currently valued at about $22.38 per share. But Spirit's board has concluded the Frontier deal is the only one that can get past regulatory scrutiny, and has recommended holders approve that offer at a special meeting scheduled for Thursday.
Source Fool.com
