JetBlue Airways has given more altitude to its offer to acquire Spirit Airlines, which is set to announce its decision amid a bidding war between two airlines in the coming days.
JetBlue raised its offer to purchase Spirit Airlines shares to $33.50 per share, $2 more than what was offered on June 6. The pricing of Spirit’s shares will include $1.50 per share in cash, which will be paid to Spirit stockholders should they vote to approve the merger, the airline announced on Monday.
“After discussions with the Spirit team last week and further due diligence review, we are more convinced than ever that a JetBlue-Spirit transaction would create a true national competitor to the Big Four and deliver value to all of our stakeholders,” said JetBlue CEO Robin Hayes. “Together, we will deliver lower fares and a better experience to more customers.”
SPIRIT AIRLINES SETS A DATE FOR DECISION ON MERGER WITH FRONTIER OR JETBLUE
The reverse breakup fee of $350 million, effectuated if the transaction is not completed for antitrust reasons, is still included in JetBlue’s latest offer.
JetBlue has offered several sweetened offers in its bid to compete with Frontier Airlines, which had an existing agreement to acquire Spirit and create the fifth largest U.S. airline. Frontier offered $250 million if the merger was not approved by regulators.
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Spirit expects to announce its decision to merge with either JetBlue or Frontier at a stockholder meeting on June 30.
