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Spirit Airlines urges shareholders to reject JetBlue's tender offer

A Spirit Airways airplane taxis for takeoff at Denver Worldwide Airport in Denver, Colorado, U.S., on Monday, Feb. 7, 2022.

Michael Ciaglo | Bloomberg | Getty Pictures

Spirit Airways’ board on Thursday urged its shareholders to reject JetBlue Airways’ hostile takeover try, citing regulatory hurdles and accusing the airline of attempting to derail its deliberate merger with fellow low cost service Frontier Airways.

“Spirit believes JetBlue’s proposals and provide are a cynical try and disrupt Spirit’s merger with Frontier, which JetBlue views as a aggressive menace,” Spirit stated in an announcement.

JetBlue launched its hostile takeover bid on Monday after Spirit earlier this month rebuffed its shock $33-a-share, all-cash acquisition bid. The tender provide from New York-based JetBlue was for $30 a share. JetBlue additionally urged Spirit shareholders to show down the mix with Frontier at a June 10 Spirit stockholder assembly.

JetBlue stated Thursday that it’s “no shock that Spirit shareholders are getting extra of the identical from the Spirit Board,” accusing it of conflicts of curiosity. JetBlue additionally stated Spirit’s board “continues to disregard the perfect pursuits of its shareholders by distorting the info to distract from their flawed course of and defend their inferior take care of Frontier.”

Spirit’s board reviewed that supply and stated in a statement Thursday that it decided it “is NOT in the perfect pursuits of Spirit and its stockholders.”

In Spirit’s assertion, it stated in talks with JetBlue that airline stated there “was a 100% certainty” that the Justice Division would search to dam JetBlue’s acquisition of Spirit.

“This deal is illusory,” Spirit’s CEO Ted Christie stated in an interview with CNBC’s “Squawk Field” on Thursday relating to the JetBlue bid to amass Spirit. “It won’t occur in our opinion and for that cause our board has rejected it and to suggest in any other case once more, we predict is insulting.”

JetBlue stated in an announcement Thursday that each offers “have the same danger profile.”

Frontier and Spirit in February introduced a $2.9 billion cash-and-stock deal to mix into a reduction airline behemoth.

JetBlue says its $3.6 billion all-cash provide would “turbocharge” its development. All three airways fly Airbus narrow-body planes, with dozens extra on order. Both mixture of the airways would create the fifth-largest U.S. service.

Spirit’s board has stated it regulators would approve a tie-up with JetBlue, citing its partnership with American Airways within the Northeast U.S. The Justice Division sued JetBlue and American over that settlement final yr with a trial date set for September.

Spirit shares had been down roughly 2% in premarket buying and selling Thursday, whereas JetBlue shares had been fractionally decrease.

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