(JetBlue) JetBlue Airways has increased the offer for Spirit Airlines to $33.50 per share as it rivals Frontier in potential acquisition of the budget carrier.
The new offer price is an increase of $2.00 per share or 6.3% compared to its previous bid. The offer represents a 67.6% premium to the implied value of Frontier’s bid as of June 17, 2022.
The new offer, which was made on June 20, includes a substantial enhancement to its prior proposals. It includes an obligation to divest assets of JetBlue and Spirit up to a material effect on the combined entity.
JetBlue further says that its offer continues to guarantee a break-up fee of $350 million or $3.20 per Spirit share, payable if the deal is abandoned on antitrust concerns.
The new offer by JetBlue comes less than two weeks after Spirit’s board delayed a special shareholder meeting. The meeting, which is now expected on June 30, was to vote on the proposed merger with Frontier.
JetBlue’s CEO Robin Hayes says the revised offer is a result of conversations with Spirit’s board. Spirit is said to have delayed the vote to allow further talks with JetBlue and Frontier.
Spirit has said its board will work with its advisers to review the updated proposal by JetBlue.
Spirit reacts: NYSE: SAVE is up +7.80%, JBLU: NASDAQ is up +1.64%.
