JetBlue Urges Spirit Shareholders To Vote Against Frontier Deal

(RTTNews) - JetBlue (JBLU) issued an open letter to shareholders of Spirit (SAVE) urging to vote against the Frontier deal. JetBlue said the merger agreement with Frontier is clearly suboptimal, with a low premium, no reverse break-up fee, and no divestiture commitment.

"Multiple Spirit directors have significant ties to Frontier's controlling shareholder, Bill Franke, resulting in a conflicted Spirit Board more focused on securing an inferior transaction with Frontier than maximizing value for its own shareholders," JetBlue stated.

JetBlue noted that its offer provides: a superior all-cash price of at least $33.50 per Spirit share; an accelerated payment of $2.50 per Spirit share; a larger reverse break-up fee of $400 million; and a ticking fee - a monthly prepayment of $0.10 per share until the deal is consummated.