Spirit Airlines said late Thursday that it will talk to JetBlue Airways about its $3.6 billion bid to combine the two airlines, which appeared to leapfrog an earlier offer by Frontier Airlines.
Spirit said that after speaking with financial and legal advisers, its directors believe JetBlue's offer could"reasonably" turn out to be the better of the two deals.Frontier did not comment immediately.
JetBlue's bid for Spirit has received lukewarm reviews from Wall Street, with investors sending JetBlue shares down 18% since news of the offer broke on Tuesday. Some analysts have questioned whether JetBlue is underestimating the difficulty and cost of combining two very different airlines. Frontier and Spirit, on the other hand, are both budget airlines that charge rock-bottom fares but add fees for some things that are included in the ticket price at bigger airlines. Frontier, based in Denver, operates primarily in the West, while Spirit, based in Miramar, Florida, is stronger on the East Coast and the Caribbean.
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