Bidding war for Spirit Airlines heats up ahead of vote

By AP News

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The bidding war over Spirit Airlines is ramping up again with JetBlue boosting its offer for the discount carrier just days after rival Frontier upped its own bid for Spirit.

The bidding war over Spirit Airlines is ramping up again with JetBlue boosting its offer for the discount carrier just days after rival Frontier upped its own bid for Spirit.

Spirit shareholders are also scheduled to vote Friday on Frontier's offer.

JetBlue said Monday that it will now provide a $350 million reverse break-up payable to Spirit if a deal between the two isn't completed for antitrust reasons. This is $150 million more than JetBlue previously offered to pay.

JetBlue said it would prepay $1.50 per share in cash, about $164 million, of the reverse break-up fee, in the form of a cash dividend to Spirit stockholders promptly following the Spirit stockholder vote approving the combination between Spirit and JetBlue.

Spirit stockholders would ultimately receive $30 per share in cash at the closing of the transaction and the prepayment of $1.50 per share of the reverse break-up fee.

Spirit did not immediately respond to an email seeking comment.

JetBlue Airways Corp. originally offered $3.6 billion in cash, then launched a $3.2 billion tender offer and asked Spirit shareholders to reject the Frontier bid.

JetBlue's announcement comes less than a week after Frontier Airlines added a $250 million termination fee to its proposal. Denver-based Frontier's cash-and-stock offer — which is unanimously supported by Spirit's board — had been valued at $2.9 billion when it was announced, but it has lost some of its value since then.

Shares of JetBlue and Frontier Group Holdings Inc. rose slightly before the market open, while Spirit's stock jumped 5.5%.

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Author: AP News

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.

Originally published by Associated Press Valuethemarkets.com, Digitonic Ltd (and our owners, directors, officers, managers, employees, affiliates, agents and assigns) are not responsible for the content or accuracy of this article. The information included in this article is based solely on information provided by the company or companies mentioned above.

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