JetBlue launches takeover bid for Spirit Airlines
JetBlue is proposing a cash purchase of Spirit Airlines stock at a price of $30 per share.
US low-cost airline JetBlue Airlines announced on Monday a takeover bid for rival Spirit Airlines, which had preferred a merger with Frontier Airlines.
JetBlue, which is now proposing an all-cash purchase of Spirit stock at a price of $30 per share, also filed a document in which the group asks Spirit shareholders to vote "no" on the Frontier merger proposal. At a special meeting on June 10.
JetBlue said it was willing to recall its initial offer of $33 a share if Spirit agreed to return to the negotiating table.
Earlier this month, Spirit's board rejected a $3.6 billion takeover offer from JetBlue, saying it was concerned the deal would be blocked by competition authorities.
JetBlue has a partnership with American Airlines, the Northeast Alliance, which could be an obstacle to the deal going through.
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