The Clap
JetBlue (NASDAQ: JBLU) has launched a hostile takeover offer for Spirit Airlines (NYSE: SAVE), after the latter recently rejected a previous offer.
The deets
JetBlue’s revised offer is even lower than its first, $30/share vs $33/share previously. However, the low-cost airline said its $33/share is still on the table if Spirit is willing to negotiate.
Spirit’s shares are currently hovering around $19/share.
Strong words
In response to Spirit’s rejection in favor of a seemingly lower offer from Frontier Airlines, JetBlue’s CEO had a few words to say: “Spirit’s Board is prioritizing its own self-interest & personal relationships with Frontier over its shareholders’ interests.”
He said, she said
JetBlue says acquiring Spirit would better position it to compete with bigger U.S. airlines, as well as give them access to a fleet of trained pilots & Airbus planes.
On the other hand, Spirit & Frontier argue that a deal between the two would allow them to grow & compete more effectively.
Whether Spirit goes with JetBlue or Frontier’s deal, the U.S.’s fifth-largest airline would be created.
