Categories: Business

JetBlue Launches Tender Offer for Spirit Airlines at $30 a Share

[ad_1]

Text size

Spirit Airlines planes are shown at the George Bush Intercontinental Airport in Houston


Photo by Brandon Bell/Getty Images



Spirit Airlines

shares surged Monday after



JetBlue Airways

launched a hostile takeover for the discount carrier.

JetBlue (ticker: JBLU) has begun a tender offer for Spirit (SAVE) shares. Spirit rejected JetBlue’s $3.6 billion takeover proposal earlier this month, opting to stick with a lower-priced bid from 



Frontier Group

(ULCC).

“Given the Spirit Board of Directors’ complete unwillingness to share the same necessary diligence information that was shared with Frontier, JetBlue is now offering to acquire Spirit for $30 per share in cash through a fully financed tender offer,” JetBlue said in a statement Monday.

“This represents a 60% premium to the value of the Frontier transaction as of May 13, 2022 — a very compelling offer and higher than the premium implied by JetBlue’s original proposal. JetBlue is fully prepared to negotiate in good faith a consensual transaction at $33, subject to receiving necessary diligence,” the airline added.

Spirit didn’t respond to a request for comment from Barron’s on Monday.

JetBlue’s initial offer price for Spirit was $33 a share.

JetBlue also on Monday urged Spirit shareholders in a letter to vote against what it called “the inferior, high risk, and low value Spirit/Frontier transaction” at Spirit’s special meeting next month.

JetBlue said in a filing with the Securities and Exchange Commission that it has received from



Goldman Sachs

an indication of its willingness to underwrite $3.5 billion in new debt to help finance the purchase of Spririt.

Spirit shares jumped 11.8% Monday to $18.99. JetBlue fell 4.4% to $9.62. Frontier shares rose 5.6%.

Write to Joe Woelfel at joseph.woelfel@barrons.com

[ad_2]
Source link
Admin

Recent Posts

Kijangwin is the latest online video gaming provider

Kijangwin is your brand-new go-to destination for all things internet gaming. Whether you're an informal…

1 day ago

How to Style Trendy Clothes Effortlessly

Hey there, fashion enthusiasts! Are you ready to dive into the world of trendy clothes…

2 days ago

How to effectively recover your frozen/stolen funds from fraudulent platforms

Hey there! If you're reading this, there's a good chance you've found yourself in the…

2 days ago

Important things about Core 2 . 0 regarding Hemp Users

Hey there, hemp enthusiasts! If you've been on the hunt for the next big thing…

4 days ago

Exploring the Features and Benefits of Strio

Hey there! Have you ever found yourself tangled up in the world of communication and…

1 week ago

The Importance of Pre-Sale Pest Control: Ensuring a Smooth Home Transaction

Are you worried that hidden critters might derail your home sale? Selling a house can…

1 week ago