Spirit Airlines rejects merger with Frontier – again

CNN Business
02-12
Reuters  — 

Spirit Airlines on Tuesday rejected Frontier Group’s acquisition offer, worth about $2.16 billion, saying the bid from its fellow ultra-low-cost carrier was less beneficial to shareholders than its ongoing reorganization plan.

Frontier’s offer was a reiteration of its proposal from earlier this month in which it proposed Spirit’s shareholders would get $400 million in debt and a 19% stake in Frontier.

However, it dropped a requirement that Spirit complete a $350 million equity rights offering and use the proceeds to retire its debtor-in-possession facility. It also requires the bankruptcy court-approved $35 million termination fee be waived.

However, Spirit, which filed for bankruptcy protection last year and expects to complete its restructuring in the first quarter, said the revised proposal did not address certain material risks and issues it had previously identified.

Instead, the Florida-based airline offered a counterproposal in which Spirit shareholders would get $600 million in debt and $1.185 billion in equity – which Frontier rejected.

The two companies had been in merger talks since at least 2022, even before Spirit filed for bankruptcy due to prolonged periods of financial losses and a substantial debt load.

However, JetBlue Airways jumped into the fray and prevailed. But that deal was scrapped after a U.S. judge blocked it on anti-competition concerns.

Frontier revived its takeover efforts earlier this year, but Spirit had said the first offer was inferior to the one the two companies had discussed last year and sought an assurance that the deal would close and Frontier would not walk away.

免责声明:投资有风险,本文并非投资建议,以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请,作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考,不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证,投资者应自行研究并在投资前寻求专业建议。

热议股票

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10