- Spirit Airlines merger saga continues.
- In the latest turn of events, SAVE’s Board has postponed its shareholder meeting to consider JetBlue’s latest proposal.
- Currently, SAVE trades 8% above Frontier’s offer price, presenting a 41% upside to JBLU’s latest offer.
- Although there is uncertainty over the stance of US antitrust regulators, SAVE appears to have an attractive risk-reward with a protected downside.
- In my view, the Board should eventually approve the JBLU merger proposal and the ULCC offer will serve as a backup option for SAVE in the short term.
For further details see:
Spirit Airlines: Asymmetric Short-Term Arbitrage Play