JetBlue Airways Corporation JBLU does not seem to back away, the airline submitted a decisively superior proposal to the Board of Directors of Spirit Airlines Incorporated SAVE for acquisition.
The new, improved proposal is an update to JetBlue's previous proposals (dated March 29, 2022, April 29, 2022, and June 6, 2022, respectively) and is structured to maximize value and certainty for Spirit and its stockholders.
Related: Spirit Airlines Gets Second Takeover Bid This Year: What Investors Should Know
The improved proposal increased the price to $33.50 per Spirit share. The increased price of $33.50 per Spirit share represents an improvement of $2 per share or 6.3% compared to JetBlue's June 6 proposal and a 67.6% premium to the implied value of the Frontier transaction as of June 17, 2022.
Related: JetBlue Ups Offer On Spirit Takeover Bid: What You Need To Know
JetBlue's recent improved proposal includes a significant enhancement to its prior proposals in the form of an obligation to divest JetBlue and Spirit assets up to a material adverse effect on the combined JetBlue-Spirit, with a limited carve-out to this divestiture obligation for actions that are reasonably likely to materially and adversely affect the anticipated benefits under JetBlue's Northeast Alliance.
Related: Spirit Airlines Rejects JetBlue's Takeover Bid; JetBlue Renews Offer
JBLU also included the commitments from previous proposals that were well received by Spirit stockholders.
"After discussions with the Spirit team last week and further due diligence review, we are more convinced than ever that a JetBlue-Spirit transaction would create a true national competitor to the Big Four and deliver value to all of our stakeholders," said Robin Hayes, chief executive officer, JetBlue.
Also Read: Frontier, Spirit Airlines Amend Merger Agreement - See What's The Change
Price Action: SAVE shares are trading higher by 8.04% at $23.05 during the premarket session on the last check Tuesday.
Photo via Wikimedia Commons
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