5/2, 2:30 PM (Source: TeleTrader)
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Spirit Airlines rejects JetBlue offer

Spirit Airlines revealed on Monday in a statement that the company is rejecting JetBlue's offer, asserting that its Board of Directors "has unanimously determined that the unsolicited proposal received from JetBlue Airways does not constitute a 'Superior Proposal'" to the one made by Frontier and that the revised offer of the former contains "an unacceptable level of closing risk."

"After a thorough review and extensive dialogue with JetBlue, the Board determined that the JetBlue proposal involves an unacceptable level of closing risk that would be assumed by Spirit stockholders," Mac Gardner, Chairman of Board of Directors for Spirit Airlines noted adding that the company "continues to believe in the strategic rationale of the proposed merger with Frontier and is confident that it represents the best opportunity to maximize long-term shareholder value."

The decision was made, even after JetBlue promised to provide for a $200 million reverse break-up fee, approximately $1.80 per Spirit share, should it fail to complete the proposed acquisition for antitrust reasons.

Baha Breaking News (BBN) / AY