Originally Posted by
RiddleEagle18
The new frontier break up fee just highlights the NK boards failure to use the initial JB offer as leverage to secure a better offer from frontier.
It took a hostile takeover offer, and likely institutional investors tendering or threatening to tender, for frontier to even offer a break up fee. A fee neither airline even needs to offer. There are no grounds to deny a merger that creates the 5th largest company in an industry.
Yep, Iv'e got to give it to Indigo. They bought Spirit, reformed it, IPO'd it for a few billion dollars and as an 85% owner of Frontier, are about to get Spirit back almost free. Brilliant. Problem for ULCC is that with the breakup fee offer, they have just admitted that the regulatory profile is the same for Jetblue and Frontier which means the Spirit board has just lost it's best argument for giving the airline away. I don't know who will end up with SAVE but Franke is going to have to negotiate and pay something. Shareholders will revolt.