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Spirit Airlines soared 15% after JetBlue Airway stated a hostile all-cash takeover bid for Spirit Airlines two weeks after the discount carrier shot down an offer from the larger rival.
Source: JetBlue
JBLU down -1.19%, SAVE up +14.55%, Pre-market trading
JetBlue is embroiled in a takeover battle for Spirit Airlines with Frontier Group Holdings and has claimed that a deal would help better compete with the “Big Four” U.S. airlines that own nearly 80% of the passenger market.
In a letter to Spirit shareholders, JetBlue provided $30 per share and stated it was ready to negotiate in good faith a consensual transaction at $33.
JetBlue stated that “Vote No” proxy statement encouraged Spirit shareholders to vote against the proposed merger with Frontier, in which cash and stock for every share of the discount carrier were valued at $18.81 per share.
JetBlue reported that Spirit Airlines in April had sought significantly higher reverse break-up fees.
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