hercretired

https://ir.flyfrontier.com/news-rele...pirit-airlines

Frontier Group Holdings, the parent company of Frontier Airlines, was to merge with Spirit.

I suppose Indigo Group could "buy Spirit" but that may be to operate Spirit as a stand-alone brand. Such as Volaris.

For Spirit to merge and morph into Frontier, I think the original plan is how it has to happen (Frontier, not Indigo, is the buyer)

but who knows

Powderkeg

Youre correct that they didn't say what the company would be called but it was Frontier purchasing Spirit with cash and stock. The way things sit now it could be Indigo paying cash, trimming the fat then merging them. But, echoing what you said, I have no idea.

HSCompressor

I see, I see.

Well I suppose the other side of the stock issue is that Spirit is worth less now, and therefore a lower offer can be made. Offsetting the lower stock value.

Again, I don’t pretend to know ANYTHING about corporate legal/finance. It’s a miracle I do my own taxes every year with TurboTax. Every year when I file, and press the submit button, I’m convinced I’m going to jail. I always check my mail, and never answer my phone, because I’m convinced it’s the warrant out for my arrest.

So yeah. Don’t take merger and acquisition bets from me. You’re probably going to lose.

Stayontarget

It was required per the contract or JB would forfeit last 70M they owed NK. Now if they found some other way to say the deal fell through and a way to keep that 70M I wouldn’t be surprised if they take it.

To me Robin being ousted, a delay in an appeal, and now this all seem to point to abandoning the NK train.

As far as Frontier purchasing I could see a mostly stock merger. 1 to 1 or 1.5 for 1 type deal now. Maybe a half billion or billion thrown in to wipe the 2025 debt clean and go from there. Frontier should have insider info on how much the P&W settlement will be because Volaris already got their cash. Shouldn’t be too hard to value the company as a result. But they would still need to bypass the Clayton act that denied JB. Monopoly being the key deterrent in a F9 NK case.

Now that being said I was wrong about the JB merger so what do I know?

PCLs2FLY

https://12ft.io

Avoid paywalls forever

Blueskies67

I only see F9 buying spirit post bankruptcy for pennies on the dollar.

Aero1900

Agreed. Just like they bought Frontier.

I suppose there is a chance that after an official announcement is made that JB is ending the purchase attempt or the appeals court says "no," Frontier goes in with a low ball offer, but I doubt it.

madmax757

Just because some analyst from yahoo finance said their doom and gloom doesn’t mean it’s carved in stone. Maybe spirit can turn it around. I sure hope we do !

Noisecanceller

I give spirit management a less than 10% chance of wanting to do the things to turn it around (read major customer service changes).

I give Spirit management a less than 3% chance of being able to execute that plan even if they actually wanted to.

westcoastj

So i'm looking at the stock data as a complete noob, but I'm curios what you all think...

When the merger was agreed upon for Frontier to buy Spirit the stock price was Frontier: $12.39 and Spriti was $21.73... I don't know what the market cap was at the time, or if that even matters.

I guess my thinking is as it stands, if Frontier can continue their stock price recovery (even a little bit) I see no reason they could not afford to buy Spirit. That's what I heard for the last 6 months, that Frontier was worthless and could not aquire Spirit anymore.

Frontier is trading now at $7.57 and Spirit is all the way down too $6.65...,

If anything, Indigo would be getting a steal if they could buy them for maybe 10-15 bucks a share.

How long would it take for Frontier to try to secure an aquisition if the apeal is struck down by the courts?

I do think there's a case to be made that combining to become a larger ULCC is good for the consumer. When you think about the opposing side, Jetblue is not really a LCC... They have premuim lie-flat seating on international flights to euorpe. It's not even comparable to someone like Frontier who is a full blown ULCC.

Okay, i'll step off my soap-box, but seriosly... I would be schocked if they did not put a bid in by the end of the summer/fall