JetBlue Offers To Buy Spirit Airlines For $3.6 Billion—Throwing Planned Spirit-Frontier Merger In Doubt

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JetBlue on Tuesday made a nearly $3.6 billion 'unsolicited offer' to purchase all outstanding shares of Spirit Airlines, Spirit announced in a news release, sending the company's stock soaring but leaving the budget airline's future unclear.

JetBlue on Tuesday made a nearly $3.6 billion"unsolicited offer" to purchase all outstanding shares of Spirit Airlines, Spirit

in a news release, sending the company's stock soaring but leaving the budget airline's future unclear.... [+]Key Facts The proposed all-cash deal would value Spirit at $33 per share, far higher than the $23 implied value Spirit agreed to in February as part of aThe Frontier merger still faces a regulatory review process, and Spirit stockholders have not yet approved the move, which would combine the nation's two biggest ultra-low-cost airlines.

Spirit's board of directors will now"evaluate JetBlue's proposal and pursue the course of action it determines to be in the best interests of Spirit and its stockholders," the company said.broke the news of JetBlue’s offer Tuesday afternoon, while JetBlue's stock slumped about 1.8% following the news, closing at $13.64.The February merger announcement was billed as a shakeup to the U.S.

the Biden Administration to block the planned merger, arguing it would reduce competition and lead to higher fares.The Spirit-Frontier merger was touted, in part, because Spirit largely operates in the eastern United States while Frontier has a heavy presence in the west. But JetBlue, like Spirit, is an eastern-based airline.

 

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Will this be an all cash deal or will some stock be involved in the acquisition?

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JetBlue bids for Spirit Airlines, potentially spoiling Spirit’s merger with Denver-based FrontierJetBlue Airways has made an offer to acquire Spirit Airlines for roughly $3.6 billion, three people with knowledge of the matter said, throwing a wrench into Spirit’s plan to merge with Frontier Airlines. (via nytimes)
Source: denverpost - 🏆 13. / 72 Read more »