Spirit Airlines On Monday Rejected JetBlue's $3.6 Billion Acquisition Proposal And Chose To Continue To Fulfill The M & A Agreement Reached With Frontier Airlines At A Lower Price. Even If JetBlue Raised Its Offer At The Last Minute, It Failed To Make The Board Members Of Spirit Airlines Change Their Mind.
The Reason They Give Is That The Deal With JetBlue May Not Be Completed Due To Antitrust Resistance, While The $2.9 Billion Deal With Frontier Airlines Will Be Completed.
Last Month, JetBlue Airlines Made A Bid Of $33 Per Share And A Total Of $3.6 Billion To Spirit Airlines, Launching A Bidding War With Frontier Airlines. On Monday, JetBlue Promised To Divest Some Assets To Alleviate Antitrust Concerns, And Will Pay A "breakup Fee" Of $200 Million If The Transaction Cannot Be Completed Due To Antitrust Reasons.
But This Still Failed To Impress Spirit Airlines. The Company's Board Of Directors Said On Monday: "we Believe That As Long As The Northeast Alliance (NEA) Between JetBlue And American Airlines Still Exists, The Possibility Of Anti-monopoly Approval For The Merger Of JetBlue And Spirit Airlines Is Very Small."