JetBlue launches hostile takeover bid for Spirit Airlines

A JetBlue airliner lands past a Spirit Airlines jet on taxi way at Fort Lauderdale Hollywood International Airport on Monday, April 25, 2022. (Joe Cavaretta/Sun Sentinel/Tribune News Service via Getty Images)

Joe Cavaretta | Sun Sentinel | Getty Images

JetBlue Airways on Monday commenced a hostile all-cash takeover bid for Spirit Airlines, days after the discount carrier rejected an offer from the larger rival.

JetBlue, which had earlier offered $33 per share, is locked in a takeover battle for Spirit with Frontier Group Holdings and has argued a deal will help better compete with the “Big Four” U.S. airlines that control nearly 80% of the passenger market.

In a letter to Spirit shareholders on Monday, JetBlue offered $30 per share and said it was ready to “negotiate in good faith a consensual transaction at $33, subject to receiving necessary diligence”.

Spirit rejected the earlier offer, saying it had a low likelihood of winning approval from regulators.

JetBlue said on Monday it had filed a “Vote No” proxy statement urging Spirit shareholders to vote against the planned merger with Frontier, which has offered $21.66 in cash and stock for each share of the discount carrier.

Shares of Spirit rose more than 19% to $20.28 in premarket trading.

Frontier and Spirit did not immediately respond to Reuters requests for comment.

Spirit is scheduled to hold a shareholder meeting on June 10 to vote on its proposed merger with Frontier.

Read More:JetBlue launches hostile takeover bid for Spirit Airlines

2022-05-16 09:07:43

Get real time updates directly on you device, subscribe now.

Notify of
Inline Feedbacks
View all comments

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Get more stuff like this
in your inbox

Subscribe to our mailing list and get interesting stuff and updates to your email inbox.

Thank you for subscribing.

Something went wrong.