JetBlue bids for Spirit Airlines
05-18-2022, 09:55 AM
#1011
The REAL Bluedriver
Joined APC: Sep 2011
Position: Airbus Capt
Posts: 6,905
They said drop your NEA. JetBlue said no. Negotiations over. Doesn’t the DOJ have an issue with that ? And some people think a recession is imminent. If $33 is such an amazing premium And a recession is imminent .. then If I was a JetBlue shareholder Id be concerned the company is overpaying for an airline prior to a recession.
JB's offer was higher than F9s, and if NK BOD would have engaged, could have been pushed even higher. In either case, that higher bid could and should have been used to force F9 to increase it's offer, as it wasn't the only suitor. The shareholders are entitled to the highest price they can reasonably get for their shares, but the NK BOD never used the higher B6 offer to try and get more value from F9. In fact, they never solicited any other offers at all. That is quite unusual, and is just one more indication of a process that wasn't on the up and up.
The NK BOD/management has long-standing ties with Indigo, and at a minimum, is promised 5 seats on the combined BOD. THAT is why they refused to engage JB in earnest and THAT is why they didn't pursue other offers and THAT is why they didn't use multiple offers to push the price higher on F9.
I KNOW why you can't or won't see it, but its highly probable large and small shareholders will see what's staring them right in the face and a shareholder lawsuit is likely if this doesn't change it's trajectory.
05-18-2022, 09:56 AM
#1012
The REAL Bluedriver
Joined APC: Sep 2011
Position: Airbus Capt
Posts: 6,905
05-18-2022, 10:12 AM
#1013
Gets Weekends Off
Joined APC: May 2015
Posts: 465
Yep, you still missed the point. I know why you've missythe point, again, but none the less you didn't address it.
JB's offer was higher than F9s, and if NK BOD would have engaged, could have been pushed even higher. In either case, that higher bid could and should have been used to force F9 to increase it's offer, as it wasn't the only suitor. The shareholders are entitled to the highest price they can reasonably get for their shares, but the NK BOD never used the higher B6 offer to try and get more value from F9. In fact, they never solicited any other offers at all. That is quite unusual, and is just one more indication of a process that wasn't on the up and up.
The NK BOD/management has long-standing ties with Indigo, and at a minimum, is promised 5 seats on the combined BOD. THAT is why they refused to engage JB in earnest and THAT is why they didn't pursue other offers and THAT is why they didn't use multiple offers to push the price higher on F9.
I KNOW why you can't or won't see it, but its highly probable large and small shareholders will see what's staring them right in the face and a shareholder lawsuit is likely if this doesn't change it's trajectory.
JB's offer was higher than F9s, and if NK BOD would have engaged, could have been pushed even higher. In either case, that higher bid could and should have been used to force F9 to increase it's offer, as it wasn't the only suitor. The shareholders are entitled to the highest price they can reasonably get for their shares, but the NK BOD never used the higher B6 offer to try and get more value from F9. In fact, they never solicited any other offers at all. That is quite unusual, and is just one more indication of a process that wasn't on the up and up.
The NK BOD/management has long-standing ties with Indigo, and at a minimum, is promised 5 seats on the combined BOD. THAT is why they refused to engage JB in earnest and THAT is why they didn't pursue other offers and THAT is why they didn't use multiple offers to push the price higher on F9.
I KNOW why you can't or won't see it, but its highly probable large and small shareholders will see what's staring them right in the face and a shareholder lawsuit is likely if this doesn't change it's trajectory.
the BOD is entitled to offer the best value for the shareholders. Not absolute dollar terms. And of course it’s no secret we have many ties to F9. Perhaps that’s why they see the VALUE in the business model and see the potential, resulting in long term shareholder value. The BOD themselves have massive amount of shares and didn’t take the immediate cash. That tells me a lot. And it was unanimous. And this argument the BOD is out of work if the deal consummates is tiring at best. The BOD members have other sources of income and jobs. And if If the deal is such a slam dunk the BOD would take the $33 make their millions and go be a board member somewhere else. They’d vote 9-0 in favor I’m guessing if it was all about their moneys and exit strategies. However they have obligation to the shareholders to do what’s best for the LONG term value of shareholders. They clearly see a better horizon with F9 as do I. And if board seats are such a big deal and robin just wants to negotiate then offer 3-4 board seats at JetBlue if that’s all they seek? The good of this is the shareholders themselves such as I get to vote. Then there will be no cloak and dagger in the dark room speculation. We all get an up or down vote. We’ll see in June . Thanks for playing though
05-18-2022, 10:26 AM
#1014
The REAL Bluedriver
Joined APC: Sep 2011
Position: Airbus Capt
Posts: 6,905
wrong again.
the BOD is entitled to offer the best value for the shareholders. Not absolute dollar terms. And of course it’s no secret we have many ties to F9. Perhaps that’s why they see the VALUE in the business model and see the potential, resulting in long term shareholder value. The BOD themselves have massive amount of shares and didn’t take the immediate cash. That tells me a lot. And it was unanimous. And this argument the BOD is out of work if the deal consummates is tiring at best. The BOD members have other sources of income and jobs. And if If the deal is such a slam dunk the BOD would take the $33 make their millions and go be a board member somewhere else. They’d vote 9-0 in favor I’m guessing if it was all about their moneys and exit strategies. However they have obligation to the shareholders to do what’s best for the LONG term value of shareholders. They clearly see a better horizon with F9 as do I. And if board seats are such a big deal and robin just wants to negotiate then offer 3-4 board seats at JetBlue if that’s all they seek? The good of this is the shareholders themselves such as I get to vote. Then there will be no cloak and dagger in the dark room speculation. We all get an up or down vote. We’ll see in June . Thanks for playing though
the BOD is entitled to offer the best value for the shareholders. Not absolute dollar terms. And of course it’s no secret we have many ties to F9. Perhaps that’s why they see the VALUE in the business model and see the potential, resulting in long term shareholder value. The BOD themselves have massive amount of shares and didn’t take the immediate cash. That tells me a lot. And it was unanimous. And this argument the BOD is out of work if the deal consummates is tiring at best. The BOD members have other sources of income and jobs. And if If the deal is such a slam dunk the BOD would take the $33 make their millions and go be a board member somewhere else. They’d vote 9-0 in favor I’m guessing if it was all about their moneys and exit strategies. However they have obligation to the shareholders to do what’s best for the LONG term value of shareholders. They clearly see a better horizon with F9 as do I. And if board seats are such a big deal and robin just wants to negotiate then offer 3-4 board seats at JetBlue if that’s all they seek? The good of this is the shareholders themselves such as I get to vote. Then there will be no cloak and dagger in the dark room speculation. We all get an up or down vote. We’ll see in June . Thanks for playing though
In that scenario the shareholders would get both a better upfront price or share count ratio AND get the F9 merger. But that didn't happen because of the close ties between F9 and NK management.
And... The BOD can't use a red herring argument such as the NEA to keep shareholders from getting a larger payout for their shares. You act as if you believe most Spirit shareholders are married to their investment. That's ridiculous. Most non-spirit employed shareholders invest in many companies for a return. If they can get 60-70-80% immediate returns, and then put that cash immediately to work in other investments, many/most would find that appealing instead of having to wait for possibly years to MAYBE, POSSIBLY, SOMEDAY, if everything goes right, and nothing goes wrong, maybe someday the value of F9 will increase to MATCH the current JB offer, maybe, someday in the far off future. The lost opportunities of what those investors can do with those proceeds NOW outweigh your fantasy unicorn ULCC domination scenario.
Last edited by Bluedriver; 05-18-2022 at 11:08 AM.
05-18-2022, 10:27 AM
#1015
Gets Weekends Off
Joined APC: May 2015
Posts: 465
The point is they didn't use the offer to get a better price for the shares FROM F9.
In that scenario the shareholders would get both a better upfront price or share count ratio AND get the F9 merger. But that didn't happen because of the close ties between F9 and NK management.
And... The BOD can't use a red herring argument such as the NEA to keep shareholders from getting a larger payout for their shares. You act as if you believe most Spirit shareholders are married to their investment. That's ridiculous. Most non-spirit employed shareholders invest in many companies for a return. If they can get 60-70-80% immediate returns, and then put that cash immediately to wo I'm other investments, many/most would find that appealing instead of having to wait for possibly years to MAYBE, POSSIBLY, SOMEDAY, if everything goes right, and nothing goes wrong, maybe someday the value of F9 will increase to MATCH the current JB offer, maybe, someday in the far off future. The lost opportunities of what those investors can do with those proceeds NOW outweigh your fantasy unicorn ULCC domination scenario.
In that scenario the shareholders would get both a better upfront price or share count ratio AND get the F9 merger. But that didn't happen because of the close ties between F9 and NK management.
And... The BOD can't use a red herring argument such as the NEA to keep shareholders from getting a larger payout for their shares. You act as if you believe most Spirit shareholders are married to their investment. That's ridiculous. Most non-spirit employed shareholders invest in many companies for a return. If they can get 60-70-80% immediate returns, and then put that cash immediately to wo I'm other investments, many/most would find that appealing instead of having to wait for possibly years to MAYBE, POSSIBLY, SOMEDAY, if everything goes right, and nothing goes wrong, maybe someday the value of F9 will increase to MATCH the current JB offer, maybe, someday in the far off future. The lost opportunities of what those investors can do with those proceeds NOW outweigh your fantasy unicorn ULCC domination scenario.
Having equity in a new entity could be seen as a better play than potentially a profit/ tax bill. Like i said, the good news is the BOD has spoke . Irrelevant now. It’s up to the individual shareholder at this point.
And the unicorn domination thing is your words not mine. I Believe in the ULCC model . Some do some don’t. My personal belief as employee and Stockholder the long term viability is a marriage with F9. I voted accordingly. I love the JetBlue product and all my buddies over there … Jumpseat often on you guys. My want to go with F9 is not a slight of B6. I just few the match works better. We’ll see in June.
Last edited by FlyGuy2002; 05-18-2022 at 10:41 AM.
05-18-2022, 10:31 AM
#1017
Gets Weekends Off
Joined APC: Jan 2016
Posts: 167
Our BOD is controlled by Bill Franke and his secret Indigo investors. Read Ben Baldanza's comments on working for Bill Franke. Bill would call Ben and say well, "the Wizz Air CEO is doing better, you guys at Spirit need to step it up." Thinking that our BOD is not operating with regard to what Bill Franke wants is highly naive or just wishful thinking.
wrong again.
the BOD is entitled to offer the best value for the shareholders. Not absolute dollar terms. And of course it’s no secret we have many ties to F9. Perhaps that’s why they see the VALUE in the business model and see the potential, resulting in long term shareholder value. The BOD themselves have massive amount of shares and didn’t take the immediate cash. That tells me a lot. And it was unanimous. And this argument the BOD is out of work if the deal consummates is tiring at best. The BOD members have other sources of income and jobs. And if If the deal is such a slam dunk the BOD would take the $33 make their millions and go be a board member somewhere else. They’d vote 9-0 in favor I’m guessing if it was all about their moneys and exit strategies. However they have obligation to the shareholders to do what’s best for the LONG term value of shareholders. They clearly see a better horizon with F9 as do I. And if board seats are such a big deal and robin just wants to negotiate then offer 3-4 board seats at JetBlue if that’s all they seek? The good of this is the shareholders themselves such as I get to vote. Then there will be no cloak and dagger in the dark room speculation. We all get an up or down vote. We’ll see in June . Thanks for playing though
the BOD is entitled to offer the best value for the shareholders. Not absolute dollar terms. And of course it’s no secret we have many ties to F9. Perhaps that’s why they see the VALUE in the business model and see the potential, resulting in long term shareholder value. The BOD themselves have massive amount of shares and didn’t take the immediate cash. That tells me a lot. And it was unanimous. And this argument the BOD is out of work if the deal consummates is tiring at best. The BOD members have other sources of income and jobs. And if If the deal is such a slam dunk the BOD would take the $33 make their millions and go be a board member somewhere else. They’d vote 9-0 in favor I’m guessing if it was all about their moneys and exit strategies. However they have obligation to the shareholders to do what’s best for the LONG term value of shareholders. They clearly see a better horizon with F9 as do I. And if board seats are such a big deal and robin just wants to negotiate then offer 3-4 board seats at JetBlue if that’s all they seek? The good of this is the shareholders themselves such as I get to vote. Then there will be no cloak and dagger in the dark room speculation. We all get an up or down vote. We’ll see in June . Thanks for playing though
05-18-2022, 10:50 AM
#1018
Gets Weekends Off
Joined APC: Sep 2014
Position: fifi whisperer
Posts: 1,255
That a weird thread this has become.
can we agree on 5 simple thing?
1) JetBlue and the Spirit board don’t like each other
2) we will know the answer in June
3) no real chances we can effect the outcome unless you all own more than 1% of spirit stock. NOTE: owning airline stock is always a terrible long term move.
4) the JCBA better be good
5) the IROPs we will share, if this deal goes through, will be amazing.
carry on.
can we agree on 5 simple thing?
1) JetBlue and the Spirit board don’t like each other
2) we will know the answer in June
3) no real chances we can effect the outcome unless you all own more than 1% of spirit stock. NOTE: owning airline stock is always a terrible long term move.
4) the JCBA better be good
5) the IROPs we will share, if this deal goes through, will be amazing.
carry on.
05-18-2022, 11:19 AM
#1019
Gets Weekends Off
Joined APC: Feb 2009
Posts: 616
That a weird thread this has become.
can we agree on 5 simple thing?
1) JetBlue and the Spirit board don’t like each other
2) we will know the answer in June
3) no real chances we can effect the outcome unless you all own more than 1% of spirit stock. NOTE: owning airline stock is always a terrible long term move.
4) the JCBA better be good
5) the IROPs we will share, if this deal goes through, will be amazing.
carry on.
can we agree on 5 simple thing?
1) JetBlue and the Spirit board don’t like each other
2) we will know the answer in June
3) no real chances we can effect the outcome unless you all own more than 1% of spirit stock. NOTE: owning airline stock is always a terrible long term move.
4) the JCBA better be good
5) the IROPs we will share, if this deal goes through, will be amazing.
carry on.
05-18-2022, 11:26 AM
#1020
The REAL Bluedriver
Joined APC: Sep 2011
Position: Airbus Capt
Posts: 6,905
how do you know it’s a 60-70-80 % gain ? $33 could very well be a loss. And using your logic that shareholders often dance in/out of stocks then why didn’t they already sell your hypothetical 80% gain? 80% gain and they still hold large volume of shares ? Got it . IF it’s a gain it could be a significant taxable event.
Having equity in a new entity could be seen as a better play than potentially a profit/ tax bill. Like i said, the good news is the BOD has spoke . Irrelevant now. It’s up to the individual shareholder at this point.
And the unicorn domination thing is your words not mine. I Believe in the ULCC model . Some do some don’t. My personal belief as employee and Stockholder the long term viability is a marriage with F9. I voted accordingly. I love the JetBlue product and all my buddies over there … Jumpseat often on you guys. My want to go with F9 is not a slight of B6. I just few the match works better. We’ll see in June.
Having equity in a new entity could be seen as a better play than potentially a profit/ tax bill. Like i said, the good news is the BOD has spoke . Irrelevant now. It’s up to the individual shareholder at this point.
And the unicorn domination thing is your words not mine. I Believe in the ULCC model . Some do some don’t. My personal belief as employee and Stockholder the long term viability is a marriage with F9. I voted accordingly. I love the JetBlue product and all my buddies over there … Jumpseat often on you guys. My want to go with F9 is not a slight of B6. I just few the match works better. We’ll see in June.
Often times it's better to take the loss now, and reinvest the proceeds into an investment which has better chances of gains FROM HERE.
And selling for a loss now often has tax advantages, to help offset gains in other investments.
If an investor would take a loss at $30-33 a share, then they are REALLY in the hole at the current share price, and would need likely years of everything going just right and the market not being in a recession to have a chance of climbing out of that giant hole. In most cases it would be better to take a small loss now and put that money to work in an investment with much better chances of appreciation vs forfeiting those gains now and remaining married to your original investment which has apparently, it's your example, only been a huge dog in the HOPES that you can climb back out of that huge hole, someday, eventually.
You should be able to understand this.
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