Spirit Airlines has once again turned down Frontier Airlines' acquisition offer, deeming it financially inadequate. The latest bid, valued at $2.1 billion, was lauded as a 'compelling proposal' by Frontier but was rejected by Spirit's leadership following assessment by their bondholder advisors. Spirit has chosen to pursue its restructuring plan instead, aimed at navigating bankruptcy, rather than merging with Frontier. Previously, JetBlue's attempt to acquire Spirit also fell through due to legal hurdles. Spirit's previous deal of $2.9 billion was dismissed in 2022, marking ongoing difficulties in securing a merger deal.
In a filing with the Securities and Exchange Commission, Spirit called Frontier's deal "woefully insufficient financially" compared to the $2.9 billion agreement tossed out in 2022.
Spirit CEO Ted Christie and board chair Mac Gardner stated the current proposal is so insufficient as not to merit a counter.
Ultimately, Spirit rejected Frontier's offer in favor of existing restructuring plans that are expected to guide the airline out of bankruptcy.
JetBlue also attempted to purchase Spirit last year but abandoned the agreement after a federal judge blocked the merger.
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