I got an email from fidelity saying "a security you hold in your account is affected by a voluntary tender offer with a cutoff date of 07/28/2022. If you choose to participate, you must contact us to provide instructions. If you choose not to participate, your account may still be affected."

I came to this page by clicking the link in the email. I assume it has to do with frontier/spirit merger?



I have no idea what any of this means.. can someone help? It appears as though someone is offering to buy my shares, but I don't see an offer price.

Do you own individual shares of Spirit Airlines?

Quote:

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NYSE: SAVE) for $30.00 per share, net to the seller in cash, without interest and less any required withholding taxes, to 5:00 p.m., New York City time, on July 29, 2022

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https://www.businesswire.com/news/home/20220630005884/en/JetBlue-Extends-Tender-Offer-for-Spirit-Airlines-Inc.-to-July-29-2022


It's pretty common in the private equity world, sometimes the business will do a voluntary share buyback, or in this case a 3rd party is doing this to increase their ownership percentage (ideally to take control).

OK I see down in fine print below my screen shot, it's $30/share.
I'm in at $20.71, and the all time high is right at $30.

Apparently this is Jet Blue trying to buy my shares, to prevent the spirit/frontier merger..

https://airinsight.com/jetblue-directly-targets-spirit-shareholders-with-new-offer/

I'm interested in what my options are.. obviously sell for $30, but if I keep.. the merger I assume continues and the price is what it is??

Or if I decline, and the merger is stopped, and jet blue gets my shares for even less in the future??

Seems like a classic Prisoner's dilemma where the highest payout is if you individually do not take the offer, but enough other people do take the $30/sh offer so that JetBlue has enough ownership to force the merge ($33/sh supposedly). But if nobody takes the offer and the merge fails, then you're stuck at market price which $24.13.

I have no guidance, but I've had to evaluate 3 PE tender offers in my investing career and I've turned them all down - which proved to be more correct ($) than accepting.

RockOn said:

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Seems like a classic Prisoner's dilemma where the highest payout is if you individually do not take the offer, but enough other people do take the $30/sh offer so that JetBlue has enough ownership to force the merge ($33/sh supposedly). But if nobody takes the offer and the merge fails, then you're stuck at market price which $24.13.

I have no guidance, but I've had to evaluate 3 PE tender offers in my investing career and I've turned them all down - which proved to be more correct ($) than accepting.

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It's $24 now, but I'm not selling now. I intend to hold long term. With that, I guess I'll do nothing.

HouAggie said:

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Sell at $30, buy back at $24? What am I missing?

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I was assuming I wouldn't be able to do this.

Clearly I don't understand what's going on here.

offer will only go through if they can get their target % of shares.

62strat said:

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HouAggie said:

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Sell at $30, buy back at $24? What am I missing?

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I was assuming I wouldn't be able to do this.

Clearly I don't understand what's going on here.

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I know the entire manage team of JBLU. Take the money and run.

$30,000 Millionaire said:

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I know the entire manage team of JBLU. Take the money and run.

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Uh Biffle aint no rocket surgeon either..

I would take the offer and run. Not sure why you are invested in a **** airline like Spirit, but that's just me.

This whole M&A has been to fun to watch though. B6 with an absolute hard-on to buy Spirit is funny to me.

YouBet said:

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I would take the offer and run. Not sure why you are invested in a **** airline like Spirit, but that's just me.

This whole M&A has been to fun to watch though. B6 with an absolute hard-on to buy Spirit is funny to me.

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I loaded up on airlines in June 2020 after covid, knowing they were all on sale. United, SW and spirit. I'm up 30,33, and 17% respectively now.. at one point was up 90,80 and 50% though!

I don't think this is them wanting it as much as it wanting to avoid competing in the LCC /ULCC market with the scale that an F9 + NK combo would have.

jh0400 said:

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I don't think this is them wanting it as much as it wanting to avoid competing in the LCC /ULCC market with the scale that an F9 + NK combo would have.

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True. It's an opportunity to remove a competitor.

What I haven't looked at though is what markets and slots it might get them by buying them. There may be some market opportunity here as well.

1 ****ty airline trying to buy another ****ty airline. I guess you can give 2 ****s. Take the money & buy you a dividend paying stock, like some really strong MLP's.

Perhaps you could accept that offer to get $30/share and if you're afraid of missing upside regarding the merger, purchase a few options.