The Clap
JetBlue increased its reverse breakup fee in its offer to acquire Spirit Airlines from $200 million to $350 million.
Just a few days ago..
Frontier Airlines, which also put an offer on the table for Spirit, announced a $250 million breakup fee, $50 million more than JetBlue’s initial offer.
Why this matters
Spirit’s shareholders are voting this Friday on which offer to take. The breakup fee acts as insurance if either deal doesn’t get past regulatory bodies.
While JetBlue’s offers have been financially superior to Frontier’s throughout this bidding war, Spirit’s board previously expressed interest in going with Frontier.
