Earlier this year, Frontier Group Holdings Inc (NASDAQ:ULCC) agreed to buy Spirit Airlines (NYSE:SAVE) for $2.9 billion in cash and stock. Neither of those airlines provides long international flights but are two of the cheapest domestic flight providers in the US. Since the announcement Spirit’s stock has been on a rollercoaster of sorts, with initial promise, followed by a dip when investors seemingly caught on to the delay of the merger. Frontier took a harder hit, seeing its stock reach a 52-week low in the aftermath of the non-action.
Part of the reason there hasn’t been a deal between the two is JetBlue (NASDAQ:JBLU) entered with its own $3.4 billion all-cash takeover bid. Spirit will have a shareholder's meeting on June 30th to discuss which course of action suits them best.
