Spirit Airlines shares slump after backing new Frontier Group bid
Frontier Group Holdings Inc. has upped the deal to snap up Spirit Airlines Inc. as the two ultra-low-cost airlines try to elbow JetBlue Airways Corp. out of their merger amid a surge in air travel this summer and rising ticket prices.
Spirit’s stock tumbled 9.1% in premarket trading Monday, to pull back from Friday’s two-month closing high. Shares of Frontier and JetBlue JBLU, +5.77% were still inactive ahead of Monday’s open. “The board believes a merger with Frontier is the most financially and strategically compelling path forward for Spirit stockholders and has a greater likelihood of closing,” Spirit said.
Under the new terms disclosed Friday, Frontier will increase the per-share cash consideration payable to Spirit shareholders to $4.13 in cash, in addition to the per-share stock consideration of 1.9126 shares of Frontier previously agreed.
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