Spirit Airlines rejects another Frontier Airlines acquisition worth $2.16B
Published On Feb 12, 2025, 6:54 AM
Spirit Airlines has rejected Frontier Airlines' recent acquisition proposal valued at $2.16 billion, indicating that the terms did not sufficiently appeal to their shareholders compared to Spirit's own restructuring plan. The rejection follows a history of merger discussions that began before Spirit's bankruptcy in 2024, which was prompted by ongoing financial issues. Frontier's revised offer did not address major concerns raised by Spirit, leading to Spirit countering with a more favorable offer that Frontier declined. The rejection of this acquisition could impact both companies as they navigate their future strategies in a competitive market.
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Frontier Airlines may continue facing market pressure as it tries to regain footing against competitors, especially after a failed merger attempt with Spirit Airlines. Without a successful acquisition, Frontier's growth potential may be limited in the near term due to intensified scrutiny over its financial strategies. Investors might consider staying away or reassessing their positions in Frontier Airlines.
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