Low-cost carrier Spirit Airlines has rejected a $3.6 billion takeover offer from JetBlue Airways. This is because it is judged that the possibility of approval from the US aviation authority is not high.
According to the Wall Street Journal (WSJ) and other media on the 2nd, Spirit Airlines rejected the proposal in a letter to JetBlue saying it would be difficult to get approval from the authorities, and said that it would continue to pursue a merger with Frontier Air. said it would
JetBlue previously made a $3.6 billion merger bid to acquire Spirit Airlines and offered up to $200 million in fees if it doesn’t get approval from the authorities This would be difficult, the Spirit Airlines board judged.
“After a thorough review and extensive dialogue with JetBlue, the Board of Directors has concluded that JetBlue’s proposal entails an acquisition risk that is difficult to assume for Spirit shareholders,” said Mac Gardner, Chairman of Spirit.
In March, low-cost carriers Frontier and Spirit Airlines agreed to a merger, after which JetBlue made a larger takeover bid to Spirit.