JetBlue Sweetens Spirit Deal Again

The airline offers an improved proposal, increased by $150 million ahead of the Frontier vote.

Michael Wildes

Tuesday, June 07, 2022 at 03:41 PM ET

Verified

JetBlue aircraft [Credit: JetBlue]

Key Takeaways:

JetBlue has increased its cash offer to acquire Spirit Airlines to $31.50 per share, comprising a $30 upfront payment and a $1.50 prepayment from an increased reverse break-up fee.
To demonstrate commitment and address regulatory concerns, JetBlue raised its reverse break-up fee to $350 million, significantly higher than Frontier's offer.
JetBlue continues to argue its proposal is "superior," criticizing Spirit's board for not fully evaluating it due to antitrust concerns, and made a direct appeal to Spirit employees promising better terms.
This enhanced bid comes ahead of Spirit's crucial shareholder vote on the competing Frontier offer, with Spirit's board acknowledging and now reviewing JetBlue's updated proposal.

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JetBlue (NASDAQ: JBLU) again attempted to sweeten the deal to buy the airline in a letter to Spirit’s (NYSE: SAVE) board of directors on Monday. JetBlue is offering $31.50 per share in cash, which combines a $30 upfront deal fee and a $1.50 pre-payment from a raised break-up fee. An increase from the previous $30 per share offer, JetBlue continues to make its case that its offer to buy Spirit instead of Frontier (NASDAQ: ULCC) is a ‘superior proposal.’

In the statement, JetBlue CEO Robin Hayes said, “The key features of our improved proposal—the up-front cash payment and increased reverse break-up fee—reflect the seriousness of our commitment and underscore our confidence in completing this transaction.”