JetBlue Stock Rises, Spirit Shares Fall After Deal Is Called Off

JetBlue Airways and Spirit Airlines terminated their merger agreement, weeks after a judge ruled that the $3.8 billion deal would reduce competition and harm cost-conscious fliers.

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JetBlue stock rises while spirit shares fall after merger deal is called off via @WSJ#MergersAndAcquisitions #aviation #markteshttps://t.co/S9PZKB947p

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WSJ News on failed merger deal

The airlines had appealed the judge’s January ruling, but some analysts said overturning it would probably be a long shot. JetBlue and Spirit said Monday that they had come to the decision that they probably couldn’t overcome the legal and regulatory hurdles.

JetBlue Chief Executive Joanna Geraghty told employees Monday that the federal court ruling and the Justice Department’s continued opposition made the probability of prevailing anytime soon extremely low. Spirit CEO Ted Christie also said that the airlines concluded that regulatory obstacles would likely be insurmountable.

JetBlue shares rose 3 % in midday trading, while Spirit tumbled 15%.

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Source:WSJ

Image: Jetblue