Spirit shares sink 13% after JetBlue casts doubt on closing $3.8B merger
NY Post
JetBlue Airways on Friday expressed doubts over closing its $3.8 billion merger with Spirit Airlines, saying that it might not meet certain conditions required as part of the deal before the due date.
Shares of Spirit tumbled 13% to $6.25, adding to their losses of more than 60% this month that were sparked by a US judge’s move to block the deal.
The airline said it had informed Spirit that the merger agreement might be terminated on and after Sunday due to the unmet conditions.
JetBlue said it continues to evaluate options under the agreement and, unless the agreement is terminated, it would abide by its merger obligations.
In response, Spirit said there was no basis for terminating the merger agreement and it would continue to abide by its obligations and was expecting JetBlue to do the same.
The termination of the deal may deepen the gloom at Spirit.
