Originally Posted by
Left Handed
You don't have to be a private company to merge with a private company. It is possible, but I think Franke wants his money, and a merger would probably not add too much value to the stock while diluting the total number of shares available. The big reason for stock added value is when both companies lower their costs due to synergies they separately didn't have, but I think there isn't much more room for lower costs at either company. I think F9 will IPO before they do anything like a merger. Time will tell.
Totally right! This is why I don't see a Spirit-Frontier merger.
The private company statement I made was not in reference to a merger with Frontier as a requirement, but taking this company private and merging with Frontier could result in a bigger IPO, but would delay that IPO for years.
The only reason to really take this company private would be to consolidate the investment and reduce public scrutiny/reporting. The only other reason would be to accelerate growth without the restrictions we're seeing now in regards to negative analyst sentiment associated with increase capacity. But, that train has left the station, that growth has been announced.