JetBlue has raised the stakes in the fight to take over rival Spirit Airlines
JetBlue has raised the stakes in the fight with Frontier to take over the ultra-low-cost American rival Spirit Airlines. JetBlue decided to offer $ 33,50 per share, up 6,3% from the previous offer made earlier this month.
The new offer is worth $ 3,64 billion, compared to Frontier's initial offer of $ 2,9 billion. This is the latest effort by New York-based JetBlue to counter rival rival Frontier for Spirit and create the fifth largest airline in the United States.
Florida-based Spirit said it will work with a team of financial and legal advisors. "to evaluate JetBlue's revised proposal and to take the next steps considered to be in the interest of Spirit and its shareholders".
Spirit has agreed to enter into a commitment with JetBlue after a $ 350 million separation fee was paid to Spirit shareholders if the business fails on antitrust grounds.
However, Spirit continues to be in talks with Frontier under the terms of its existing merger agreement. It intends to provide an update before the special shareholders' meeting of Spirit, scheduled for June 30.
JetBlue CEO Robin Hayes said: “After discussions with the Spirit team last week and a further due diligence analysis, we are more convinced than ever that a JetBlue-Spirit transaction would create a true national competitor. for the “Big Four” [American Airlines, United, Delta Air Lines and Southwest Airlines] and adds value to all stakeholders. "Together, we will offer lower rates and a better experience for more customers."
"We are ready to move quickly to reach a merger agreement, bringing more value to shareholders, more competition to the industry and more opportunities, including incredibly strong culture and JetBlue commitments to our crew members, while greeting team members Spirit in JetBlue ”