JetBlue Launches Hostile Takeover Bid for Spirit Airlines

The New York-based airline is appealing to Spirit stockholders to reject a pending deal with Frontier Airlines.

Michael Wildes

Monday, May 16, 2022 at 02:47 PM ET

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[File photo: Shutterstock]

Key Takeaways:

JetBlue has launched a hostile, all-cash tender offer of $30 per share to acquire Spirit Airlines, directly appealing to Spirit's shareholders after its board repeatedly rejected previous bids.
Spirit's board continues to favor its existing merger agreement with Frontier Airlines, citing concerns over potential antitrust issues with a JetBlue merger despite JetBlue's higher financial offer.
JetBlue is actively campaigning for Spirit shareholders to vote against the Frontier deal on June 10, arguing its offer provides significantly more immediate cash value and certainty.

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Just weeks after Spirit Airlines’ (NYSE: SAVE ) board rebuffed JetBlue’s (NASDAQ: JBLU) second offer for a merger, the New York-based airline mounted the third attempt to take over the low-cost carrier. This time, JetBlue has gone hostile and is appealing to Spirit’s shareholders in a tender offer to reject the pending Frontier deal and vote instead on JetBlue’s direct offer.

In a statement Monday, JetBlue said it was offering an “all-cash, fully financed tender offer to acquire all of the outstanding shares of Spirit for $30 per share.” Things escalated after JetBlue said Spirit’s board of directors displayed an “unwillingness” to disclose JetBlue’s original offer to shareholders fully. JetBlue charged Spirit’s Board with showing favor to Frontier Airlines (NASDAQ: ULCC ), which initially offered to acquire Spirit in February.