Spirit Airlines Urges Shareholders to Reject JetBlue Offer

Spirit Airlines' Board of Directors urges shareholders to refuse to bid for a hostile takeover by JetBlue Airlines in favor of a tie-up with Frontier Group Holdings Inc. The board said in a statement that JetBlue's unsolicited offer of $30 per share would not be in the best interests of the spirit given the significant regulatory hurdles facing the deal.

Spirit Chairman Mac Gardner said JetBlue's offer did not address the risk of transactions not crossing the finish line and does not provide sufficient protection to Spirit's shareholders.

Rival airlines have been playing tug of war over spirit, and JetBlue's $3.6 billion takeover bid was rejected earlier this month because antitrust authorities could block the deal. JetBlue launched an attempt at a hostile takeover of Spirit on Monday, bringing the proceedings directly to shareholders and pressuring Spirit's management to resume negotiations.

JetBlue later came up with a higher bid, claiming that the combination of JetBlue and Spirit would be a stronger competitor in the current airline market. JetBlue has agreed to shed its assets for regulatory approval and pay a $200 million split fee if the proposed transaction cannot be completed due to antitrust concerns.