Spirit Airlines in talks with JetBlue over sweetened takeover deal
Spirit Airlines (S64) (SAVE) is in talks with JetBlue (JBLU) over an enhanced version of the acquisition deal offered by the New York-based carrier in early June 2022. Spirit expects to decide on the proposal by June 30, 2022.
"Consistent with its fiduciary duties, Spirit's Board of Directors is engaging in discussions with JetBlue (JBLU) with respect to the proposal received on June 6, 2022 and is also continuing to work with Frontier under the terms of the existing merger agreement between Spirit and Frontier,” Ted Christie, president and CEO of Spirit, announced in a statement.
On June 6, 2022, JetBlue (JBLU) once again attempted to win over Spirit Airlines (S64) (SAVE) by offering a sweetened deal, claiming that its proposal was "superior" to the offer made by rival Frontier.
The airline has offered to pay a $350 million fee to Spirit if the merger is blocked over unfair competition concerns. JetBlue (JBLU) has also agreed to pre-pay $150 million “promptly following Spirit shareholder approval” to proceed.
Almost a month after the announcement about the merger plans between Spirit and Frontier was released, JetBlue (JBLU) submitted an unsolicited $3.6 billion cash takeover bid for Spirit. However, all proposals made by JetBlue (JBLU), including the original offer, were rejected so far.
Up until now, Spirit has reiterated its support for a deal with Frontier and declared that it “is NOT in the best interests of Spirit and its stockholders” to proceed with JetBlue’s (JBLU) offer.
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