Originally Posted by
Halon1211
A few days ago when JetBlue began its hostile takeover, TC said the legal and financial advisers will have a new decision on JetBlue’s tender off.
just curious, if they decide to go with JetBlue how does one walk back all those negative comments about JetBlue wanting us. And now try to sell this acquisition as a positive?
Sell it to whom? I think the statement was basically intended to stop people from immediately committing their share-votes to JetBlue.
A lot of stockholders don’t actively participate - giving the BOD their proxies to vote their shares. I think the BOD is hoping enough stockholders will do that to drag the F9 deal over the finish line.
With neither offer a sure thing, the value gap between the two is far too wide to make sense. It’s weird that Spirit thus far has been either unwilling or unable to use JetBlue’s offer as leverage to press Frontier for a higher price. Unlike JetBlue, Frontier also hasn’t made any explicit commitments on divestitures should regulators require them, nor has the airline agreed to compensate Spirit if it fails to win antitrust approval. JetBlue is offering a $200 million reverse breakup fee. As I wrote earlier this month, the decision to quickly and summarily rebuff JetBlue without getting anything in return from Frontier is something that Spirit’s board will have to better explain. Right now, it’s far from clear why shareholders would agree that a significantly lower offer that carries regulatory risks of its own is obviously a superior proposal. JetBlue’s tender offer and proxy fight are merely forcing the issue.