JetBlue Airlines has Made a USD3.6 Billion Cash Bid to Acquire Spirit Airlines
Apr 6, 2022 By MarketDepth
JetBlue Airlines (NASDAQ: JBLU) has made a USD3.6 Billion all-cash bid to acquire Spirit Airlines (NYSE: SAVE). The offer rivals Spirit’s current deal to merge with discount carrier Frontier Airlines, which would make it the country’s fifth-largest airline. Both Jetblue and Spirit have confirmed the offer.
“JetBlue firmly believes its proposal constitutes a ‘superior proposal’ under Spirit’s merger agreement with Frontier and represents the most attractive opportunity for Spirit’s shareholders.”the company said in a news release late Tuesday
“The combination of the two airlines would position JetBlue as the most compelling national low-fare challenger to the four large dominant U.S. carriers by accelerating JetBlue’s growth and expanding the reach of the ‘JetBlue Effect,’” the company said in a news release.
Shares Surged 22%
Spirit’s stock was halted before the market closed on Tuesday, after shares surged over 22% to USD26.92. Amid the proposal, JetBlue is offering USD33 per share in its all-cash bid, both companies revealed. Meanwhile, JetBlue shares fell 7% at market close, following the news.
“We can all agree that Spirit has a very different brand and product than JetBlue, and so at first glance you may not think we’d make a great pair. However, when you dig deeper, you’ll realize we could be a perfect match. After all, our strong belief has always been that Customers shouldn’t have to choose between a low fare and a great experience, and JetBlue is the only airline that offers both.”JetBlue CEO Robin Hayes and COO Joanna Geraghty wrote to employees after announcing the bid for Spirit