Apparently, JetBlue's offer has added wings to the imagination of Spirit Airlines , though it will be harsh to say that JetBlue's $3.6 billion all-cash offer for Spirit Airlines can derail the merger plan of Rivals 'Spirit' and 'Frontier'.
After acknowledgement of the unsolicited proposal of an all-cash transaction for $33.00 per share from JetBlue Airways , shareholders of the Spirit Airlines want to have a discussion with Jetblue to fancy the chance of a "Superior Proposal".
On 7th April , the company released a statement saying,
Spirit Airlines, Inc. today announced that its Board of Directors has determined, after consultation with the Company's outside financial and legal advisors, that the unsolicited proposal received from JetBlue Airways to acquire Spirit in an all-cash transaction for $33.00 per share could reasonably be likely to lead to a "Superior Proposal" as defined in Spirit's merger agreement with Frontier Group Holdings, Inc., parent company of Frontier Airlines, Inc.
Read more...
However , Spirit airways says, it is bound by the merger agreement of with Frontier,
Spirit intends to engage in discussions with JetBlue with respect to JetBlue's proposal, in accordance with the terms of the Company's merger agreement with Frontier.
Spirit remains bound by the terms of the merger agreement with Frontier, and Spirit's Board has not determined that JetBlue's proposal in fact constitutes a Superior Proposal as defined in the merger agreement with Frontier.
On 15th March 2022 , Dionne Shuler , via Suit (No -1:22-cv-02141), "Dionne Shuler v. Spirit Airlines", filed at New York Southern District Court , had accused Spirit Airlines of rushing the company through sale process without exploring multiple suitors for the merger process.
Now, Spirit Airlines has another suitor , though it is too early for a disruption, and Spirit Airlines doesnot see a quick transaction with Jetblue , no harm taking it to the table and see what's coming up !
Spirit Airlines says,
In addition, Spirit notes that there can be no assurance that the discussions with JetBlue will result in a transaction. Spirit shareholders do not need to take any action at this time, and Spirit's Board has made no change to its recommendation that its shareholders adopt the merger agreement with Frontier.
You may like to read...
