Frontier’s offer to buy Spirit Airlines will not fly to further heights because the airline announced on Monday its most recent offer will remain unadjusted.
The announcement signals a possible end to Frontier’s feud with rival airline JetBlue, which has been competing with Frontier to acquire Spirit since April. Frontier increased the cash component of its deal to purchase Spirit by $2 per share to $4.13 per share in June, and also increased its reverse termination fee to Spirit by $100 million to $350 million, with Frontier CEO Barry Biffle describing the modifications as its “last, best and final offer,” according to Reuters.
“In line with our recent discussions, Frontier does not intend to propose any further modifications to the financial terms of the Merger Agreement,” Biffle said in a letter.
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JetBlue raised the value of its acquisition offer to $3.7 billion in cash in June in response to Frontier’s adjustment.
The feud between JetBlue and Frontier has delayed a shareholder vote by Spirit on its merger deal with Frontier, which had been scheduled for June 30 but is currently set for Friday. Biffle has asked Spirit to delay the vote further until July 27, claiming Frontier needs time to gather sufficient proxy support.
JetBlue’s offer to acquire Spirit for $3.6 billion in April raised questions on the possibility of a Spirit-Frontier merger becoming a reality. Spirit Airlines’s board of directors initially rejected the offer in May, claiming it was not enough to dissuade it from sticking with its initial plans to merge with Frontier.
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JetBlue did not respond to the Washington Examiner’s request for comment.
