Spirit Airlines: Wait For The Payout
- Spirit Airlines has at least 44% upside on closing the JetBlue deal.
- The airline deal still has a lot of questions on whether regulators will approve the merger.
- The stock is cheap whether the deal closes at $33.50 per share in cash or the airline and shareholders get a large breakup fee and Spirit remains a standalone airline.
- This idea was discussed in more depth with members of my private investing community, Out Fox The Street. Learn More »
While long term investors should've wanted the Frontier Group Holdings' (ULCC) buyout of Spirit Airlines (), those investors must now analyze the JetBlue Airways (JBLU) deal. The agreedinvestment thesis
Read the full article on Seeking Alpha.
Disclosure: Long SAVE. Please review the disclaimer page for more details.
Update - Sept. 15
Not convinced ending an alliance will solve the regulatory issues with the $JBLU merger. Spirit isn't even up on this news.
-JetBlue (NASDAQ:JBLU) is reportedly not as committed to retaining the Northeast Alliance with American Airlines (NASDAQ:AAL) as the JBLU CEO has said in recent months in his battle to acquire Spirit Airlines (NYSE:SAVE), according to a Dealreporter item.
-The update comes as the publication reported in the same article on Thursday that JetBlue's (JBLU) planned purchase of Spirit (SAVE) has received a second request from the DOJ, according to sources familiar.