Spirit Airlines surges after Jetblue boosts offer to $33.50/share

Jun. 21, 2022 8:49 AM ETSpirit Airlines, Inc. (SAVE), ULCC, JBLUBy: Joshua Fineman, SA News Editor6 Comments

Spirit Airlines Jet

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Spirit Airlines (NYSE:SAVE) jumped 8.2% in premarket trading after Jetblue (NASDAQ:JBLU) upped its offer to $33.50/share as it continues to fight Frontier (NASDAQ:ULCC) in its quest for the ultra-low cost carrier. Jetblue rose 1.6%, while Frontier advanced 4.7%.

Jetblue (JBLU) upped its latest bid by $2/share from its most recent offer more than two weeks ago. In the latest offer Spirit stockholders would receive total aggregate consideration of $33.50 per share in cash, comprised of $32.00 per share in cash at the closing of the transaction and the prepayment of $1.50 per share in cash, according to a statement.

Jetblue's (JBLU) latest and fourth offer for Spirit Airlines comes after a Spirit Airlines (SAVE) holder vote on its planned sale to Frontier was delayed to next Thursday from June 10 after JetBlue unveiled an updated bid earlier this month.

JetBlue’s proposal on Monday included a "significant enhancement" to its prior proposals through an obligation to divest assets of JetBlue and Spirit up to a material adverse effect on the combined JetBlue-Spirit.

JetBlue (JBLU) said its latest proposal represents a 67.6% premium to the implied value of the Frontier (ULCC) deal with Spirit (SAVE) as of Friday.

Spirit Airlines (SAVE) confirmed receipt of a revised Jetblue (JBLU) proposal and said it will provide an update to holders ahead of its holder vote on June 30, according to a statement.

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