We are investigating whether the directors of Spirit Airlines, Inc. (NYSE: SAVE) (“Spirit”) acted in the best interests of Spirit shareholders in approving the sale of Spirit to Frontier Group Holdings, Inc. (“Frontier”) for $25.83/share in cash and Frontier stock.
If you remain a Spirit shareholder and have questions about your legal rights, please contact us using the form below to discuss your options at no charge.
Why is there an investigation?
On February 7, 2022, Spirit announced that it had entered into an agreement with Frontier under which Spirit shareholders will receive 1.9126 shares of Frontier plus $2.13 in cash for each Spirit share they own. This implies a value of $25.83 per Spirit share at Frontier’s closing stock price of $12.39 on February 4, 2022. The deal has already been approved by the boards of both companies.
Our investigation concerns whether Spirit’s board acted in the best interests of Spirit shareholders in approving the sale, including whether the sale price adequately compensates Spirit shareholders, and whether all information regarding approval of the transaction has been fully disclosed. In particular, according to an analysis by Seeking Alpha, there are 14 Wall Street analysts covering Spirit with an average price target of $30.64 per share, and a high price target of $43.00 per share, both of which are above the $25.83 per share price being paid by Frontier.
Further, a recent analysis on Seeking Alpha referred to Spirit as the “best airline play through 2030” based on Spirit’s rapid growth and unique business model.