BeechedJet

O’Doyle Rules!

fcoolaiddrinker

I’m not so sure about that. Your saying indigo won’t let jb eliminate its largest competitor and spend 3.6 billion to do it? Why not?

TOGALOCK

If you really want to shake your head, go check out the F9/NK crew merger Facebook page that was taken over by flight attendants in its first five minutes of life. For the past month or so it’s been nothing but “oh my frontier family” this, “love my new family” that. Now it’s 90% NK FAs crapping on and making fun of F9 like their poop doesn’t stink.

This isn’t happening until spirit planes are being painted blue. NK has already agreed to be purchased by Indigo and there will be a hefty financial penalty that NK will have to pay F9 if they pull out. It’s already part of the agreed upon deal. As of right now NK is still being purchased by Indigo. JetBlue has simply come along and said, “Hey you should consider dropping that deal and going with us. Here’s why and here is what we will pay you.” Whether NK will take the deal or not is another story. For the sake of image with NK shareholders they have to at least act they are going to explore the deal and see if it’s in their best interest. It doesn’t mean they have any intention of actually taking it.

Talk is cheap. Believe it when it starts to happen and, right now, NK and F9 are still further along in the process than JB. At the moment, JB is nothing but a talking point. That’s not to say that there isn’t a chance this could happen, but many on the Spirit forums are acting like it’s a done deal and the F9 deal is dead. Like Therapysession said, don’t go buying blue shirts just yet.

howzitchina

Well said!

Excargodog

Neither can happen until the DOJ OKs the deal. And there was already a lawsuit pending against the NK management by some of the stockholders who believed NK management hadn’t done due diligence in soliciting other offers before agreeing to jump in bed with F9.

https://www.law360.com/articles/1474...r-merger-plans

A better offer means that management pretty much MUST present it to the stockholders since neither offer can go through without a stockholder vote. Given that the JB offer is about 20% more lucrative and most of the stock is held by Vanguard and other big investment companies, there is no reason to think the Jet Blue deal won’t go through if the DOJ green lights it. Unless F9 or someone else ups the ante even further…

And don’t believe that can’t happen. Alaska seriously overpaid for VX, just to disassemble it.

fcoolaiddrinker

It could always be worse. Imagine republic made the initial offer. Swa then makes an offer. You thought for sure no way republic wins that and now there’s legislation to prevent a staple. Lol.

Fah2

The strategy I outlined (a bit colorfully to be entertaining) quoted in the post above yours:

JetBlue falls further behind with a Green/Yellow merger. They don’t have to actually buy NK, they just need to implode the frontier deal. Later down the road if they decide the bait price they offered to do that isn’t worth it, they finds ways to pressure DOJ to scrap the deal (so no financial penalties). The language and reasoning used to kill the merger would most likely make a subsequent green/yellow merger next to impossible. Even if they can’t get justice to axe the deal, compare any penalties for walking away vs the money they would lose against Sprontier and the choice is obvious.

Sounds like tin foil hat stuff but this is how the game is played.

Hellokitty

I totally agree!

Excargodog

I agree with you only in the tin foil hat part. If the ADOJ agrees, it’s a done deal. If they don’t, it gets more complicated. That goes for either merger option. Politics can affect it but not your Machiavellian scheming. Not with the SEC and class action lawyers hovering around.

FNGFO

Btw, B6 doing things to prevent F9/NK getting together isn’t free. I suspect they’ll be asked to foot the cancellation fee as a show of good faith at least.