JetBlue Makes an All-Cash Bid for Spirit, Could Disrupt Frontier Merger

Proposed deal provides more money for Spirit shareholders, but raises questions of synergy.

Michael Wildes

Wednesday, April 06, 2022 at 04:30 PM ET

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JetBlue's proposal includes $33 per share to Spirit shareholders. [File photo: Adobe Stock]

Key Takeaways:

JetBlue Airways made a surprise $3.6 billion all-cash offer for Spirit Airlines, aiming to acquire it instead of Spirit's previously announced merger with Frontier Airlines.
JetBlue's proposal of $33 per share offers Spirit shareholders a significant premium (over 50%) compared to Frontier's lower-value stock-and-cash deal.
Spirit executives received the offer as "unsolicited" but are obligated to present it to shareholders, who must weigh the richer bid against potential concerns like differing business models and job security.

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JetBlue Airways (NASDAQ: JBLU) has made a surprise $3.6 billion all-cash offer for Spirit Airlines (NYSE: SAVE) in a move to supplant a previously announced merger between Frontier Airlines (NASDAQ: ULCC) and Spirit Airlines.

The airline said in a statement that its “superior proposal” of $33 per share to Spirit shareholders would represent a more than 50 percent appreciation on the Spirit share price at the time of the offer on April 4.