(Spirit) Budget air carrier Spirit Airlines said it received an unsolicited offer to be acquired by JetBlue Airways for a $33 a share cash deal.
Spirit announced that its board of directors will scrutinize JetBlue’s proposal and pursue a course of action that takes the best interest of the company and its shareholders.
The latest offer comes slightly less than a month after Spirit announced a merger agreement with Frontier Group Holdings. Under the deal, Spirit and Frontier would combine, with the former’s equity holders getting 1.9126 shares of the latter and an additional $2.13 in cash for each share they own in the company.
JetBlue says its offer is superior for Spirit investors, representing a 37% premium to the value stated in Frontier’s proposal.
Frontier says JetBlue’s proposal would lead to pricier travel and hurt competition. The airline also believes its networks complement those of Spirit.
It now remains to be seen whether the intended offer by JetBlue would arouse the antitrust regulators in the US. JetBlue already faces scrutiny from the Justice Department following its partnership with the American Airlines Group.
SAVE closed up +22.37% on Tuesday, down -3.72% in premarket. JBLU closed down -7.08% on Tuesday, down -3.45% in premarket.
