JetBlue presents improved bid to acquire Spirit

Monday, 06. June 2022 13:32

JetBlue has submitted an enhanced proposal to Spirit's Board of Directors to acquire all of the company's outstanding common stock, JetBlue said Monday in a statement. According to the release, the proposal offers Spirit shareholders "demonstrably higher value" and "more regulatory protections."

Under the new deal, JetBlue would give a $350 million "reverse breakup fee, payable to Spirit in the unlikely event the transaction is not consummated for antitrust reasons." Besides, the company would pay in advance $1.50 per share in cash (around $164 million) of the reverse breakup fee.

"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 Crewmembers and Team Members, and more value for stockholders," said Robin Hayes, Chief Executive Officer of JetBlue in a letter to the Board of Directors of Spirit.

At 7:29 am ET, Spirit Airlines shares were up 5.88% in premarket trading to sell for $21.86.

Related Links: Spirit Airlines Inc.JetBlue Airways Corp.
Baha Breaking News (BBN) / JG