- Spirit Airlines soared as much as 22% early Monday after JetBlue initiated a hostile takeover.
- JetBlue is offering $30 a share to sway Spirit shareholders away from a merger with Frontier Airlines.
- JetBlue also said its earlier offer of $33 a share is still on the table if Spirit management negotiates.
Spirit Airlines soared as much as 22% early Monday after JetBlue initiated a hostile takeover amid a bidding war with Frontier Airlines.
JetBlue sent a letter to Spirit shareholders, offering $30 per share, but also said its earlier offer of $33 a share is still on the table if Spirit management negotiates. The tender offer is due to commence Monday and stay open until June 30.
Spirit stock pared gains to 13%, while JetBlue was down 1.6% anf Frontier rose 4%.
In April, JetBlue made an all-cash $3.6 billion offer for the low-cost airline, after Spirit and Frontier reached a $2.9 billion cash-and-stock deal in February.
Spirit is set to hold a vote on the proposed merger with Frontier at its June 10 shareholder meeting. JetBlue added that the April deal fell short after Spirit demanded a higher breakup fee .
JetBlue said it would operate Spirit under the JetBlue banner, helping New York’s “hometown airline” grow from its current position as the sixth largest carrier airline in the US.