Spirit Airlines has once again turned down a takeover offer from Frontier Group. This time, the offer was worth around $2. 16 billion. The airline said the offer was not as good for its shareholders as its current plan to reorganize.

        Frontier's offer was similar to one made earlier. It included $400 million in debt and a 19% stake in Frontier for Spirit's shareholders. However, Frontier dropped a requirement for Spirit to raise $350 million through an equity rights offering. It also wanted a $35 million termination fee to be waived.

        Spirit, which is based in Florida, filed for bankruptcy protection last year. It expects to finish its restructuring in the first quarter of this year. The airline said Frontier's revised offer did not fix certain problems it had already pointed out.

        Instead, Spirit made a counteroffer. It proposed that Spirit's shareholders would get $600 million in debt and $1. 185 billion in equity. Frontier rejected this counteroffer.

        Spirit and Frontier have been in talks about a merger since at least 2022. These talks started even before Spirit filed for bankruptcy due to financial struggles. JetBlue Airways had also tried to take over Spirit, but a U. S. judge blocked the deal because of competition concerns.

        Frontier tried again to take over Spirit earlier this year. However, Spirit said the first offer was not as good as the one discussed last year. Spirit wanted assurance that the deal would go through and that Frontier would not back out.

        The airline industry is known for its tough competition. Many airlines have faced financial difficulties, leading to mergers and acquisitions. This situation highlights the challenges airlines face in staying competitive and profitable.

        Spirit's rejection of Frontier's offer shows that the airline is focused on its own restructuring plan. It believes this plan will be more beneficial for its shareholders in the long run. The situation also raises questions about the future of mergers and acquisitions in the airline industry.

Spirit Airlines Says No to Frontier's Takeover Bid

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