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Frontier Group sees a deal with Spirit Airlines after revised offer

Published 06/27/2022, 05:59 PM
Updated 06/27/2022, 06:02 PM
© Reuters. Spirit and Frontier Airlines logos are seen in this illustration taken June 27, 2022. REUTERS/Dado Ruvic/Illustration

CHICAGO (Reuters) - Frontier Group Holdings Chief Executive Barry Biffle said on Monday the company's revised offer for Spirit Airlines (NYSE:SAVE) Inc will be enough to secure a merger deal with the ultra-low-cost carrier.

"We're really excited about it and getting good feedback," Biffle told Reuters in an interview.

© Reuters. Spirit and Frontier Airlines logos are seen in this illustration taken June 27, 2022. REUTERS/Dado Ruvic/Illustration

Frontier has been vying with JetBlue Airways (NASDAQ:JBLU) Corp to acquire Spirit. Either of the deals would create the fifth-largest U.S. airline.

Denver-based Frontier last week bumped up the cash component of its offer for Spirit by $2 per share to $4.13 per share and agreed to prepay $2.22 per share as a cash dividend to Spirit stockholders following approval of the transaction. It also increased its reverse termination fee to Spirit by $100 million to $350 million.

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