Frontier offers Spirit Airlines USD250 million sweetener

Frontier is sweetening its proposed acquisition of Spirit Airlines by offering a kill fee of $250 million should it not get regulatory approval. It comes after a proxy advisory firm urged a shareholder no vote as no break-up fee was initially part of the deal.

A $2.9 billion acquisition of Spirit would make the combined business the fifth biggest US airline.

Rival JetBlue Airways has proposed a hostile $3.3 billion takeover which the Spirit board opposes.