The American airline Frontier on Friday raised the proposal of its competitor Spirit Airlines, which also approved JetBlue, a few days before the general meeting, which must submit the domain to the vote. Frontier has added $ 2 in cash per share, its bid, which mainly consists of shares, now estimates its target at about $ 2.63 billion. In February, Frontier և Spirit unveiled their merger plan, at the end of which Spirit shareholders owned 48.5% of Frontier’s capital. In early April, JetBlue, their competitor in the low-cost flight market, made a competitive bid that it raised on Monday, which Spirit now estimates at $ 3.63 billion.
Spirit’s board of directors opposes the merger with JetBlue, arguing that the union of the two companies will be rejected by regulators. JetBlue has promised to hold more assets than originally intended to get the green light from the regulator, in particular, to discontinue the presence of Spirit in New York after its absorption in Boston. The shareholders of Spirit must decide on Frontier’s proposal at an extraordinary general meeting on June 30, which was approved by the directors.
JetBlue responded to Frontier’s update on Friday, noting that its offer was “superior:“, In particular because it was completely in cash. Even as it was voiced, Frontier’s offer remains 27% lower than JetBlue.
Source: Le Figaro
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