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JetBlue launches hostile bid to acquire low-cost rival Spirit

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The US airline JetBlue made this Monday an offer of 30 dollars per share to the shareholders of its low-cost rival Spirit, after on May 2 the management of that company rejected an offer to buy JetBlue for 3,600 million dollars in cash.

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JetBlue’s first offer was in response to an attempt to thwart the sale of Spirit to Frontier Group, which was agreed in February but has not yet been closed.

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In an open letter to shareholders, JetBlue says its offer is “clearly superior” and that Spirit’s board of directors unfoundedly rejected it and refused to engage in constructive dialogue.

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In this sense, the company assures in the text that it is willing to offer up to 33 dollars per share if Spirit’s management agrees to sit at the negotiating table.

Following the release of the information, Spirit shares appreciated by 14.25% or $2.42 to $19.4 in pre-open wire trading on the Wall Street Stock Exchange.

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Shares of JetBlue, meanwhile, fell $0.12, or 1.19%, to $9.94.

JetBlue is also asking shareholders to speak out against the merger with Frontier Group, scheduled for June 10.

“If Spirit shareholders vote against the Frontier transaction and compel the Spirit Board to deal with us in good faith, we will work toward a $33 per share agreed transaction, subject to receiving supporting information.” JetBlue Chief Executive Robin Hayes wrote in the letter to shareholders. (I)

Source: Eluniverso

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