JetBlue launches hostile takeover bid of Spirit Airlines
JetBlue on Monday launched what is effectively a hostile takeover bid for Spirit Airlines.
Driving the news: JetBlue in a letter to Spirit's shareholders urged them to vote against an earlier deal to merge with Frontier airlines.
- "Based on the clear superiority of our offer, we expected the Spirit Board to engage constructively," JetBlue CEO Robin Hayes said in the letter to shareholders.
- "Given its unwillingness to share necessary information or negotiate in good faith, we adjusted our price accordingly, but will work towards a consensual transaction at $33 per share, subject to receiving the information to support it."
- The Justice Department last year sued JetBlue and American Airlines over their planned consolidation, saying it is anticompetitive. A number of states have also sued to block the partnership, per the New York Times.
Thought bubble from Axios' Dan Primack: It's unclear if U.S. antitrust regulators would allow JetBlue to buy Spirit (despite what JetBlue argued this morning). But, if the deal is allowed, it could spark a series of airline industry mergers.
Go deeper ... Spirit Airlines rebuffs acquisition offer from JetBlue