The Clap
JetBlue seems really keen on acquiring Spirit Airlines, & has come back with a financially enhanced offer.
Backstory
Both JetBlue & Frontier Airlines are in a bidding war to take over Spirit. However, the financial offers aren’t even close, as JetBlue’s renewed offer stands at $33.5/share, & Frontier’s stands at $19.99/share.
Why Spirit is reluctant to take JetBlue’s offer
With JetBlue’s offer undoubtedly financially superior, Spirit’s board has no faith that the deal would be approved by regulators. The thing is, though, that Frontier’s deal would likely also face the same regulatory scrutiny.
Why this matters
JetBlue has been pretty persistent throughout this bidding war. Spirit will consult with both financial & legal advisors on JetBlue’s renewed offer, & is set to make a decision no later than June 30, 2022.
