Spirit Airlines Reject JetBlue Offer

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Spirit Airlines Reject JetBlue Offer

Spirit Airlines on Monday rejected a takeover offer from JetBlue for $33-per-share. Frontier and JetBlue have both made offer to buy Spirit in order to better compete with legacy carriers.

JetBlue enhanced its offer for Spirit on Friday, but it didn’t increase the $33 per share price. With the new offer, JetBlue would provide for a $200 million reverse break-up fee, representing approximately $1.80 per Spirit share, that would become payable to Spirit in the unlikely event the JetBlue transaction is not consummated for antitrust reasons.

JetBlue’s offer is significantly higher than the current roughly $21.66 per share value of the cash and stock bid that Frontier made in February. But the board of Spirit Airlines has concerns as JetBlue is already embroiled in an antitrust lawsuit with the government for its “Northeast Alliance” partnership with American Airlines.

The Board “continues to believe that the pending transaction with Frontier represents the best opportunity to maximize value and recommends that Spirit shareholders adopt the merger agreement with Frontier”. The Company will continue to advance toward completing the transaction with Frontier, which is expected to close in the second half of 2022.

JetBlue said on Monday that it would offer a remedy package to address regulatory concerns “that includes the divestiture of all Spirit assets in New York and Boston so that JetBlue does not increase its presence in the airports covered by the NEA. The package would also include gates and assets at other airports, including Fort Lauderdale.”

DDGhttp://dannydealguru.com
Based in NYC. Points/miles enthusiast for years and actively writing about it for the last 6+ years at Danny the Deal Guru. I'm always looking out for deals. Making a few bucks is always nice, but the traveling is by far the best part of this business.

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