The battle to snap up Spirit Airlines is heating up. Frontier Group Holdings Inc has agreed to pay a break-up fee of $250 million in a bid to salvage its $2.9 billion acquisition of Spirit Airlines.
JetBlue Airways Corp, which is locked in a takeover battle for Spirit with Frontier Group, has argued that a deal would help the companies better compete with the “Big Four” U.S. airlines that control nearly 80% of the passenger market in the country.
Below are the key events in the takeover saga:
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Date
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Development
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Feb. 7
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Frontier makes a cash-and-stock offer of $25.83/share for Spirit Airlines read more
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Feb. 8
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Lawyers from the U.S. Justice Department say Spirit and Frontier’s merger to create the fifth-largest airline in the country would face close scrutiny read more
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March 10
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Several public advocacy groups call on U.S. regulators to block Frontier’s bid for Spirit read more
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April 5
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JetBlue makes an unsolicited $3.6 billion, or $33/share, all-cash bid for Spirit read more
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April 6
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JetBlue mounts a vigorous defense of its unsolicited $3.6 billion bid for Spirit, adding that it is “highly confident” of securing regulatory approval read more
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April 7
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Spirit says that it would enter into discussions with JetBlue on its $3.6-billion offer as it could likely lead to a “superior proposal” to the one from Frontier read more
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May 2
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Spirit rejects JetBlue’s $33/share offer, saying it had a low likelihood of winning regulatory approval read more
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May 10
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Head of Sun Country Airlines throws his backing behind potential merger in the ultra-low-cost airline sector read more
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May 11
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Spirit says it will hold a shareholder meeting on June 10 for a vote on its proposed merger with Frontier read more
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May 16
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JetBlue makes hostile all-cash takeover offer of $30/share and adds it was ready to “negotiate in good faith a consensual transaction at $33”
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May 19
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Spirit Airlines urges shareholders to reject the hostile offer from JetBlue, saying it was “a cynical attempt to disrupt” its merger with Frontier read more
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May 31
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Proxy advisory firm ISS has urged Spirit shareholders to vote against a proposed merger with Frontier read more
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June 2
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Frontier agrees to pay a break-up fee of $250 million in a bid to salvage its $2.9
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