Jun 6, 2022 - Economy

JetBlue beefs up Spirit takeover offer

JetBlue and Spirit airplanes at Fort Lauderdale-Hollywood International Airport (FLL) in Fort Lauderdale, Florida, US, on Saturday, May 21, 2022.

JetBlue and Spirit airplanes at Fort Lauderdale-Hollywood International Airport on May 21. Photo: Eva Marie Uzcategui/Bloomberg via Getty Images

JetBlue said Monday it was raising its offer to buy Spirit Airlines as the battle to buy the airline ramps up.

Driving the news: JetBlue raised the break-up fee that would be paid to Spirit shareholders if the deal is blocked by regulators to $350 million, which represents $3.20 per Spirit share, JetBlue said.

  • The airline also offered Spirit's shareholders $31.50 per share in cash as part of the new offer, which is comprised of $30 per share at the deal's close and the prepayment of $1.50 per share of the break-up fee, per the company.
  • Spirit said Monday that its board of directors is working with its financial and legal advisors "to evaluate JetBlue's proposal and pursue the course of action it determines to be in the best interests of Spirit and its stockholders."
  • "The Board will conduct this evaluation in accordance with the terms of the Company's merger agreement with Frontier and respond in due course," Spirit said.

State of play: JetBlue last month launched what is effectively a hostile takeover bid for Spirit Airlines and urged Spirit's shareholders to rebuff an earlier deal to merge with Frontier Airlines.

What they're saying: "Combining JetBlue and Spirit would create a true national competitor to the dominant legacy carriers, delivering low fares and a great experience for more customers, more opportunities and good paying jobs for crew members, and more value for stockholders," JetBlue CEO Robin Hayes said in a statement.

  • "The key features of our Improved Proposal – the up-front cash payment and increased reverse break-up fee – reflect the seriousness of our commitment and underscore our confidence in completing this transaction."

Go deeper... JetBlue launches hostile takeover bid of Spirit Airlines

Editor's note: This story has been updated with a statement from Spirit Airlines.

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