Spirit Airlines Shares Fly High As Bidding War Heats Up

  • JetBlue Airways Corp JBLU is planning a hostile takeover attempt for Spirit Airlines Inc SAVE after the latter spurned the former’s offer.
  • JetBlue plans to launch a tender offer directly to Spirit shareholders. JetBlue commenced an all-cash, fully financed tender offer for $30 per share.
  • JetBlue noted the offer represents a 60% premium to the value of the Frontier transaction as of May 13, 2022.
  • In addition, JetBlue said it is fully prepared to negotiate in good faith a consensual transaction at $33, subject to receiving necessary diligence.
  • JetBlue also urged Spirit shareholders to vote against the merger with Frontier Group Holdings Inc ULCC.
  • Spirit agreed in February to be acquired by Frontier in a cash-and-stock transaction valued at $2.9 billion.
  • “Ask yourself a simple question: why won’t the Spirit Board engage with us constructively? The interests of Bill Franke’s Indigo Partners and the long-standing relationships between the two companies is the obvious answer," said JetBlue CEO Robin Hayes in a letter to Spirit shareholders.
  • Spirit’s board believes the JetBlue merger would not be approved by antitrust regulators because of JetBlue's alliance with American Airlines Group AAL.
  • Price Action: JBLU shares are trading higher by 2.09% at $10.27, and SAVE higher by 11.3% at $18.90 in premarket on Monday.
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