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JetBlue Urges Spirit Shareholders To Vote Against Frontier Deal

JetBlue (JBLU) issued an open letter to shareholders of Spirit (SAVE) urging to vote against the Frontier deal. JetBlue said the merger agreement with Frontier is clearly suboptimal, with a low premium, no reverse break-up fee, and no divestiture commitment.

"Multiple Spirit directors have significant ties to Frontier's controlling shareholder, Bill Franke, resulting in a conflicted Spirit Board more focused on securing an inferior transaction with Frontier than maximizing value for its own shareholders," JetBlue stated.

JetBlue noted that its offer provides: a superior all-cash price of at least $33.50 per Spirit share; an accelerated payment of $2.50 per Spirit share; a larger reverse break-up fee of $400 million; and a ticking fee - a monthly prepayment of $0.10 per share until the deal is consummated.

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