The Clap
Frontier Airlines (NASDAQ: ULCC) has come back with an enhanced offer for Spirit Airlines (NYSE: SAVE), a few days after JetBlue (NASDAQ: JBLU) also upped its ante.
You Should Know
Frontier’s offer is a cash & stock deal, meaning the company is offering both cash & some of its shares in exchange for new stock in the combined entity.
The Deets
Frontier’s new offer came in $2/share higher than its last offer, & is offering almost 2 Frontier shares along with the cash part. As of last Friday’s close, Frontier’s offer adds up to $24.29/share, versus JetBlue’s $33.5/share.
Frontier has also raised its $250 million breakup fee to $350 million, thereby matching JetBlue’s breakup fee.
Why this matters
Spirit’s board is set to decide on which offer to go with on June 30th, 2022. The board remains reluctant to take JetBlue’s financially superior offer as it doesn’t believe the deal would make it through regulatory scrutiny.
