Spirit Air pushes back again at JetBlue, rebuffing sweetened bid

Spirit Airlines stood by a takeover bid from Frontier Group even after rival suitor JetBlue Airways Corp. further sweetened its offer in the final days before a crucial shareholder vote. The revised JetBlue proposal, which includes a higher breakup fee and larger upfront payment, won the backing of Spirit investor TIG Advisors LLC Tuesday. Proxy adviser Institutional Shareholder Services Inc. acknowledged the improved terms without changing its earlier recommendation in favor of the Frontier deal. The flurry of developments showed how battle lines are hardening ahead of a vote Thursday that should determine which of the two carriers will move ahead with a Spirit merger. The late-stage bidding war sent Spirit’s shares up 1.9% at 11:16 a.m. Tuesday in New York. Frontier climbed 3.2% and JetBlue gained 1.7%. JetBlue and Frontier are seeking to woo shareholders in the pursuit of Spirit, a deep discounter with low fares and fees for anything extra. The would-be buyers covet Spirit for the growth and competitive strength they could quickly gain through an acquisition. The US industry is dominated by four major carriers, and the victor in the war for Spirit would be ranked fifth, based on domestic passenger traffic. The newest JetBlue proposal includes an accelerated prepayment of $2.50 a share, structured as a cash dividend to shareholders after approval of the terms. That’s up from $1.50 a share in a prior offer. JetBlue said it also increased its breakup fee to $400m from $350m, to be paid if antitrust regulators block the combination.<br/>