Spirit Airlines (SAVE): $6.68
Market Cap: $729.24 million
Enterprise Value: $6.4 billion
Last week for difficult for arbitrageurs that participate in deals with large spreads on two fronts. Not only did a judge rule against the acquisition of Spirit Airlines (SAVE) by JetBlue (JBLU) but the European Union indicated that it plans to block the acquisition of iRobot (IRBT) by Amazon (AMZN).
Spirit saw its stock drop from $14.97 on January 12th to $5.70 just three trading sessions later before rebounding 17% on Friday. The heavy volume shown in the chart below and the subsequent rebound on Friday indicate most of the forced selling is likely done at this point. As we mentioned a few weeks ago, Spirit Airlines was conspicuously missing from the portfolios of several arbitrage funds that I follow that tend to hold concentrated portfolios.