Spirit to talk with JetBlue about $3.6b takeover bid

Spirit to talk with JetBlue about $3.6b takeover bid

Aviation















Bloomberg

Spirit Airlines Inc will hold talks with JetBlue Airways Corp over its $3.6 billion cash takeover bid that’s threatening to disrupt a pending combination between Spirit and rival deep discounter Frontier Group Holdings Inc.

JetBlue’s offer could lead to a superior proposal, Spirit said in a statement after assessing the bid with financial and legal advisers. JetBlue’s unsolicited offer topped Frontier’s $2.9 billion cash-and-stock purchase deal, which Spirit agreed to two months ago.

Further details on the timing of the JetBlue and Spirit discussions weren’t disclosed. Spirit’s board hasn’t changed its

recommendation that shareholders adopt the merger agreement with Frontier, and there can be no assurance talks with New York-based JetBlue will result in a transaction, the statement said. JetBlue said in a separate statement that it was pleased Spirit’s board recognised the “compelling value for all stakeholders” of its takeover proposal. JetBlue’s unsolicited offer is for $33 per Spirit share.

Any purchase would provide a burst of growth that JetBlue can’t otherwise attain, and create a secure supply of new Airbus SE planes for the future. But market overlap in the eastern parts of the US could raise