Spirit Airlines Inc (NYSE: SAVE) shares are trading lower Monday after the company rejected JetBlue Airways Corp's (NASDAQ: JBLU) proposal and said it will proceed with its previously-announced merger agreement with Frontier Group Holdings Inc (NASDAQ: ULCC).
Both Frontier and JetBlue aim to acquire Spirit to better compete with legacy carriers. Spirit has a merger agreement in place with Frontier for $2.9 billion.
Despite JetBlue's $3.6 billion takeover offer, Spirit's board unanimously determined that the JetBlue offer is not a "superior proposal," as defined by the merger agreement with Frontier because it has a lower likelihood of being approved by government regulators.
Spirit said it will continue to advance toward completing the transaction with Frontier, which is expected to close in the second half of 2022.
Related Link: Spirit Airlines Rejects JetBlue's Takeover Bid; JetBlue Renews Offer
SAVE 52-Week Range: $18.26 - $37.19
According to data from Benzinga Pro, the stock was down 9.51% at $21.37 at press time.
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