Originally Posted by
ShyGuy
How does Spirit reject JetBlue’s more superior offer? I thought the fiduciary responsibility meant to go with the higher $$$ offer for investors because both Frontier and JetBlue were qualified buyers?
Because I recall jetBlue offering $55/share for Virgin and Alaska offering $57/share, and Virgin took the Alaska offer. Despite the fact VX/B6 made way more sense (similar business model, fleet, easier integration, etc).
With Sprontier moving forward, this definitely leaves the door open for an Alaska/JetBlue combination someday. JetBlue buying Spirit would have closed that door.
This is one of those rare cases where you have to read the article and not just the headline.
In a letter sent to JetBlue, Spirit Chairman Mac Gardner said that JetBlue's bid had “an unacceptable level of closing risk" that shareholders would have to take on.