Originally Posted by
FriendlyPilot
Yes. And when they realized it was going to be a bad deal, they tanked it and then paid a bunch of merger cancellation fees.
The house analogy is like those $1 houses in Detroit in 2008. They were homes with $20k market values, but had $40k in liens attached to them. So there weren't really $1 houses.
Spirit has a bunch of debt and no way to repay it. They aren't worth buying. Nobody will buy them outright. Even for $1 because its not $1 its $3B...for what exactly? Their market cap is $115M for a reason.
They didn’t tank it. They kept going to the shareholders over and over to take more to make sure it DID happen. All the way to court. They coulda backed out after the board voted 9-0 against . They kept pushing for it . And the breakup fee was an enticement to the shareholders as a carrot to entice even more to vote yes. They did. The court decided the deal. Not the airline that wanted it .
and if they weren’t worth buying then why the offer for 3.1 and 1.8 x a billion respectively. If the price is right .. someone will get the entire operation , lock stock and barrel for a fraction of what 2 airlines were willing to pay not too long ago.