JetBlue Airways says it has raised its takeover offer of Spirit Airlines to $33.50 per share as it tries to persuade the ultra-low-cost airline to accept its bid instead of Frontier’s.
Spirit said last week that it had been in talks with JetBlue about its offer and that a vote on the decision is expected on June 30, and JetBlue said its offer represented 68% more than Frontier’s price per share in its cash and equity deal.
The new proposal includes submitting JetBlue to a “stronger liquidation commitment” to complete the Spirit deal, but it does not include abandoning JetBlue’s agreement with American Airlines.
It is worth noting that Spirit has stated that its board of directors will choose between the JetBlue and Frontier offerings before the shareholder meeting that will take place at the end of this month, but as the struggle to control it intensifies, it postponed the shareholder vote meeting from June 10 to 30.
Spirit shares surged more than 3.4% on the news of the meeting being postponed, while Frontier shares jumped 1.5% and JetBlue jumped 0.5%.
JetBlue raised its bid to buy Spirit on June 6 by increasing its termination fee to $350 million if regulators did not approve the deal, but Spirit had previously announced a merger with its low-cost counterpart Frontier since February and is still tied to the terms of its deal. which were in cash and in stock. Read more [The JetBlue Bid Raised for Spirit Airlines] and [Frontier and Spirit Sign $6.6 Billion Merger Deal].