JetBlue wins battle to buy Spirit with $3.8 billion deal
Spirit Airlines on Thursday agreed to a $3.8 billion takeover offer for low-cost rival JetBlue Airways, ending a protracted battle for the airline whose acquisition would help create the fifth-largest US carrier.
→ JetBlue opens its first destination in Canada.
JetBlue’s victory comes after Spirit called off its $2.7 billion sale to Frontier Group Holdings, but the potential combination is expected to spark a fight with antitrust regulators.
JetBlue’s offer price of at least $33.50 per share represents a nearly 38% premium over Spirit’s latest closing share price. Including a ticking fee, or small monthly payments to Spirit shareholders from January of next year until the deal is completed, the offer could reach $34.15 per share.
Spirit had accepted a $2.9 billion offer from Frontier in February before JetBlue entered the fray in April. Despite better terms from JetBlue, Spirit had pushed for a Bill Franke-backed merger with Frontier, citing antitrust concerns with a possible JetBlue tie-up.
→ JetBlue delays launch of flights between Boston and London.
But he was unable to muster investor support for the deal and was forced to delay a shareholder vote on the proposed acquisition four times. At the latest meeting set for Thursday, Spirit shareholders were expected to vote against a merger with Frontier, Reuters reported.
The result is a setback for Franke, who was instrumental in starting talks with Spirit last year. Franke’s airline-focused firm, Indigo Partners, is one of Frontier’s largest shareholders.
Related Topics
Arajet Announces Direct Flights Between Punta Cana and Córdoba, Argentina
Porter Airlines Announces Flights to Mexico, the Caribbean, and Costa Rica from Canada for Winter
LATAM Launches Two New Routes Between Brazil and Argentina
Aeroméxico Resumes Direct Route Between Mexico City and Cali, Colombia
Plataforma Informativa de Aviación Comercial con 13 años de trayectoria.