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Spirit calls on shareholders to reject JetBlue tender offer
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Spirit Airlines' board of directors has recommended that its shareholders reject a $30 per share tender offer from JetBlue Airways, arguing the takeover bid "has not addressed the core issue of the significant completion risk and insufficient protections for Spirit stockholders."
"Based on our own research and the advice of antitrust and economic experts, our view is that the proposed combination of JetBlue and Spirit lacks any realistic likelihood of obtaining regulatory approval, while our company faces a long and bleak limbo period as we await resolution," Spirit Airlines board Chairman Mac Gardner said in a statement. "In that scenario, a $1.83 per share reverse break-up fee will not come close to adequately compensating Spirit stockholders for the significant business disruption Spirit will face during what JetBlue acknowledges will be a protracted regulatory process."
SPIRIT AIRLINES INC.
JETBLUE AIRWAYS CORP.
The recommendation comes after Spirit already rejected JetBlue's initial proposal to acquire the company for $33 per share.
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Spirit said a potential combination with JetBlue would result in a "higher-cost/higher fare airline that would eliminate a lower-cost/lower fare airline and remove about half of the ULCC capacity in the United States."