JetBlue Airways Make Another Bid to Acquire Spirit Airlines
May 16, 2022 By MarketDepth
JetBlue Airways (NASDAQ: JBLU) made its third bid to acquire Spirit airlines (NYSE: SAVE) on Monday, after the carrier had rejected its USD33 per share, all-cash offer earlier this month. JetBlue has presented the offer directly to shareholders as a means of accelerating the negotiations. Spirit shares increased 17% during premarket trading Monday.
Acquisition Gives Access to Fleet of Airbus’
According to JetBlue, acquiring Spirit would give it access to a big fleet of Airbus planes, experienced pilots and a chance to better compete against the “Big Four,” the top airlines that control the U.S. market.
“If the Spirit shareholders vote against the transaction with Frontier and compel the Spirit Board to negotiate with us in good faith, we will work towards a consensual transaction at $33 per share, subject to receiving the information to support it.”JetBlue Commented
Spirit had declined it previous offer as it intended to merge with Frontier Airlines. Furthermore, the discount carrier had also revealed that it did not believe the deal with JetBlue would be approved by regulators.
Justice Department Analysis
Transportation Secretary Pete Buttigieg has refused to comment on the matter and expressed that the DOP would be there to support any Justice Department analysis of an agreement.
“The most important thing is to make sure the American people are served well by a healthy airline sector, and part of a healthy airline sector, part of any healthy sector in our economy, is healthy competition.”said in interview with CNBC’s “Squawk Box.”