Spirit Airlines calls for shareholders to reject JetBlue bid

　　div classBodysc17zpet90 cdBBJodivpBy David Shepardsonp

　　pReuters – Spirit Airlines urged shareholders to reject a hostile bid by JetBlue Airlines on Thursday, saying it was “a cynical attempt to disrupt” its merger with Frontier.pdivdivdiv classBodysc17zpet90 cdBBJodiv

　　pJetBlue says its 30 a share offer is superior to the value of Frontier‘s cashandstock deal and regulatory concerns are not a reason to reject its bid. Shareholders are set to vote on Frontier’s offer, which value Spirit at 20.18, on June 10.p

　　pSpirit questioned JetBlues disclosure Monday that acquiring Spirit has been a “strategic” objective for many years, adding that antitrust issues would mean a deal could not be completed.p

　　pJetBlue, which in early April offered 33 per share, argues a deal will help it better compete with the “Big Four” U.S. airlines that control nearly 80 of the passenger market.p

　　pThe sixth largest U.S. passenger carrier, JetBlue would operate Spirit under the JetBlue brand, but promised a 200 million reverse breakup fee, or 1.80 per Spirit share, if the deal did not go through for antitrust reasons.p

　　p“During the extensive discussions held between Spirit and JetBlue, JetBlue itself admitted that a lawsuit from DOJ seeking to block the merger was a 100 certainty therefore, JetBlue would have to prevail or settle which would be contrary to DOJs avowed enforcement approach in order to consummate its proposed acquisition of Spirit,” Spirit said in a statement.p

　　pJetBlue did not immediately comment on Thursday. p

　　pIn a letter to Spirit shareholders on Monday, JetBlue offered 30 per share and said it was ready to “negotiate in good faith a consensual transaction at 33, subject to receiving necessary diligence.”p

　　p“JetBlue‘s focus on Spirit appears to be an attempt to distract from the fact that JetBlue’s own business is in disarray,” Spirit said on Thursday, adding that its rivals stock price had fallen about 34 since March 29. p

　　p“JetBlue stockholders obviously agree that their companys quixotic offer for Spirit is a dead end, posing substantial risks to their own business,” Spirit added. p

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　　pp Reporting by David Shepardson Editing by Toby Chopra and Alexander Smithp

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