To counter Frontier’s offer, JetBlue sweetens its offer on Spirit

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  • JetBlue Airways is softening its takeover bid for Spirit Airlines.
  • The move is the latest salvo in a struggle to create America’s fifth-largest airline.
  • JetBlue’s offer represents a 68% premium to Frontier’s cash and stock offer.
  • Spirit rebuffed an initial $33 share buyback proposal by JetBlue in April.
  • The Justice Department filed an antitrust lawsuit against America and JetBlue last year to end the alliance.

JetBlue Airways said Monday it has improved its takeover bid for Spirit Airlines to $33.50 a share in a bid to persuade the super-low-cost carrier to recognize its bid over rival Frontier Airlines’ bid.

The move is the latest salvo in a fight to become America’s fifth-largest carrier, helping the buyer compete with bigger legacy players when the company faces labor and plane issues.

Soul’s board had recently rejected JetBlue’s offer, saying the United States was hostile to believing that controllers would not approve a restriction with JetBlue and remarking that JetBlue would not abandon its coalition with American Airlines. .

In any case, Spirit said last week it was in discussions with JetBlue about the proposed June 30 deal and expected.

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JetBlue’s most recent offer is at a 68% premium to cash and shares of Frontier, whose value remained at $19.99 per share on Friday.

Soul shares all closed at $21.28 on Friday.

The new proposal is $2 higher than the previous proposal and incorporates what JetBlue called a “more grounded divestiture liability” to complete the Spirit deal, but excludes the abandonment of JetBlue’s northeast alliance with American Airlines.

Soul said Monday that its board of directors would work with monetary and legitimate advice “to evaluate JetBlue’s revised proposal and seek the strategy it decides is to be of greatest benefit to Spirit and its investors.”

JetBlue said it made the new proposal “in accordance with Spirit’s board of directors and following the completion of JetBlue’s stability audit and conversations with Spirit’s oversight team.”

Last week, Spirit granted JetBlue access to a similar expected level of investment data reported to Frontier after it failed to garner sufficient investor support for its deal with the opposing admirer.

JetBlue Chief Executive Robin Hayes told Spirit’s board in a letter on Monday that the carrier “looks forward to hearing from you soon and wishes to finally move on to marking conclusive documentation for our unparalleled exchange.”

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Either arrangement would be subject to serious administrative investigation.

The Justice Department filed an antitrust lawsuit against America and JetBlue in September in an attempt to end the collusion, saying it would lead to higher passes at busy air terminals in the northeastern United States.

Soul pushed back on a $33 underlying takeover bid from JetBlue made in April, which JetBlue later reviewed at $30 and then $31.50.

Soul agreed to join JetBlue after the bigger plane raised an opposing severance fee from $150 million to $350 million, payable to Spirit investors, in the event the deal fails on antitrust grounds.

JetBlue agreed to prepay $1.50 per portion of the $33.50 promptly after Investor Spirit approved a restriction.

Soul, however, continues to discuss with Frontier under the details of its current consolidation deal.

Shares of Boondocks fell for the day 5.8% to $9.34 per offer.

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