Spirit Airlines will analyze the takeover offer by JetBlue

Spirit Airlines announced yesterday April 7 that they will sit down and talk to JetBlue regarding the outstanding offering to takeover the Floridian low cost carrier. It the merger with JetBlue were to take place, it would destroy months of negotiations between Spirit and Frontier Airlines who had made a previous offer to buy the low cost before.

Regarding the potential merger with JetBlue, airline representatives said that they are starting a consultation process with external financial and legal advisors to analyze the offer, since it is clear that what jetblue has brought to the table is “reasonably” better when it comes to the amount of cash and stock value.

• More great content from Transponder1200: JetBlue makes massive offer to buy Spirit Airlines

And while the board of directors of Spirit Airlines still believe that Frontier´s offer should not be passed by, it’s impossible not to consider and am out of money like the one jetblue is talking about. The Airline from New York is offering $3.6 billion dollars in cash plus stock value.

Analysts in the sector saw the offer as an easy and no frills approach from JetBlue to flat out buy Spirit. Frontier´s stock took a blow over the news and placed itself one third below JetBlue`s stock compared against the market numbers of last Monday. JetBlue continues saying that the merger with Spirit will place both carriers at a vantage point to fight against the big traditional carriers in the United States, who traditionally control the domestic market

The next move should be by Frontier Airlines which has a choice of punching forward with a comparable offer, at withdraw from the match before it turns into a bidding war that they will definitely not win, but will harm the price at which Spirit will be acquired and can also leave a very cash strapped JetBlue behind after having to had paid a hefty price for the Floridian low cost carrier.