JetBlue Airways has made a $3.6 billion bid in cash for Spirit airlines, complicating Spirit’s merger plan with Frontier Airlines
In a press release by Spirit, the airline says the board is evaluating JetBlue’s proposal with financial and legal advisors.
JetBlue offered $33 per share for all of Spirit’s outstanding shares, 40 per cent more than Frontier’s deal announced in February.
Frontier offered $2.9 billion in cash and stock, but the company’s shares have since fallen, reducing the net worth of the deal.
Spirit’s shares have rocketed from 20 per cent to $26.92 since the news of the jet blue bid broke. This is the highest Spirit shares have been since mid-February.
JetBlue CEO, Robin Hayes says this move would allow for lower fares and a better experience for travelers.
“The combination of JetBlue and Spirit coupled with the incredible benefits of our Northeast Alliance with American Airlines would be a game changer in our ability to deliver superior value on a national scale to customers, crewmembers, communities, and shareholders,” he says.
Rijul Baath contributed to this report
