Spirit Airlines Rejects Frontier’s Takeover Bid Again
Spirit Airlines has once again turned down an acquisition offer from Frontier Group, stating that the $2.16 billion bid does not provide as much value to shareholders as its ongoing restructuring plan.
Frontier’s latest proposal, a reiteration of its earlier offer, included $400 million in debt and a 19% stake in Frontier for Spirit shareholders. The revised bid removed a requirement for Spirit to conduct a $350 million equity rights offering and use the funds to retire its debtor-in-possession facility. It also sought to waive a bankruptcy court-approved $35 million termination fee.
Despite these adjustments, Spirit – currently undergoing bankruptcy restructuring – argued that the offer failed to resolve key concerns and risks previously identified. The airline, which filed for bankruptcy protection last year, remains focused on completing its financial reorganization within the first quarter of 2025.
Instead of accepting Frontier’s terms, Spirit countered with a proposal offering its shareholders $600 million in debt and $1.185 billion in equity – an offer that Frontier rejected.
The two budget airlines have engaged in merger discussions since 2022, even before Spirit’s financial troubles led to bankruptcy. However, JetBlue Airways later entered the competition and outbid Frontier. That deal ultimately fell apart after a U.S. judge blocked it on antitrust grounds.
Frontier renewed its takeover attempt earlier this year, but Spirit has maintained that the offer is weaker than previous negotiations and has demanded assurances that Frontier will not back out of the deal.
