AirBee

Exactly. Reading over the response from Spirit - JB was pretty well called out on their game. Sure, JB folks will try to hold onto their argument. But, NK laid it out on the table.

Roy Biggins

Question for those that know this process. At what point can JB decide to buy a majority of Spirit shares? Or can they? Can it be done after the June 10th vote if the shareholders decide the Frontier deal is better for them? I would think JB is counting on winning over the shareholders with a straight buyout as plan B.

DEM1933

So Spirit’s being completely honest, and the JetBlue guys are spin doctors trying to deceive all the shareholders…???

Lakeaffect

The last couple of interviews of Ted Christie on CNBC, he came across defensive/desperate. Not the look of a person who feels comfortable in his position.

Flyby1206

JB is trying that as we speak with the Tender Offer they recently issued:

https://www.sec.gov/Archives/edgar/d...68dex99a1a.htm

The Tender Offer runs through June 30th, so I'm not sure what happens if SAVE shareholders vote to approve the F9 merger on June 10th.

Edit: It seems that if the F9 offer is accepted on June 10th then the Tender Offer dies.

Bluedriver

Humans often believe what they WANT to believe.

flyingmonkeys

so what happens if the share holders vote no? It’s not a vote for a yes on B6 just a no to f9. I don’t understand the tender offer and how it relates to the shareholder vote. I need someone to explain this to me like I’m a student pilot from China.

Flyby1206

If the SAVE shareholders vote no on June 10 against the F9 merger then it will keep alive the possibility of a B6/NK merger and at that point the F9 offer would be dead in the water. Indigo would have to sweeten their offer and/or NK BOD would have to seriously consider the B6 offer.

the Tender Offer is a separate but related issue where JB mgmt is willing to buy any SAVE shares for $30/share in an attempt to get a majority of shares so they can basically vote in favor of their own B6/NK merger offer which gets around what the NK BOD might decide to do.

BeatNavy

I’m also curious if JB can buy SAVE shares on the open market in the meantime and exercise a vote on June 10th for whateve shares they pick up. I assume there is a reporting requirement for that (I think it’s due within 10 days of hitting 5% ownership). Seems like the more they buy in the teens on the open market, the cheaper the transaction would be with less float getting sold at $30-$33. Oddly enough, I’m not an M&A/finance expert, so I don’t know how that would work, but I vaguely recall Elon buying 10% of TWTR before he decided to buy it completely. If JB bought say 10%-20% of spirit ($200-$400 mil at today’s share price), that would be enough to move the needle on a shareholder vote while decreasing the overall purchase price. Again, I just fly airplanes on occasion, and don’t even own a suit that fits, so this isn’t my wheelhouse. Hoping the finance bros at Goldman who frequent this forum will chime in.

AirBee

My guess is the truth lies somewhere in the middle. It's foolish to think JB is completely honest as well.