Frontier Airlines parent Frontier Group Holdings Inc. (ULCC) issued a letter to Spirit Airlines Inc. (SAVE) shareholders, urging them to support the air carriers' agreed upon merger deal. In the letter, Frontier Chairman William Franke and Chief Executive Barry Biffle say the recently amended Frontier-Spirit deal offers Spirit shareholders value "well in excess" of JetBlue Airways Corp.'s (JBLU) "illusory proposal, which lacks any realistic likelihood of obtaining regulatory approval." Spirit shares dropped 5.2% premarket while Frontier shares shed 1.8% and JetBlue's stock gained 0.9%. Late Friday, Frontier raised the cash portion of the cash-and-stock buyout bid by $2 a share, and increased the reverse termination fee to $350 million. JetBlue has offered $33.50, all in cash, to buy Spirit, but Spirit's board has rejected that bid. Frontier's letter to shareholders comes ahead of the special meeting of Spirit shareholders scheduled for June 30 to vote on the merger.
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