Fort Lauderdale, Fort Lauderdale, Florida, May 16, 2022-Frontier Airlines plane near Spirit Airlines plane at Hollywood International Airport.
Joe Ladle | Getty Images
A new offer of $ 4.13 per share, higher than Frontier’s original cash and stock bids, JetBlue Airlines He repeatedly raised his own offer to buy the spirit completely with a full cash transaction.
The battle for the Florida-based spirit Miramar has intensified in recent weeks. JetBlue claims that the deal will make it more competitive with large airlines and allow it to expand quickly when new planes and pilots are in short supply.
JetBlue takes over the spirit, and the combination of frontier and spirit creates a giant discount career. Both transactions create the fifth largest airline in the country.
Spirit shareholders will vote for Frontier deals on Thursday.
Spirit CEO Ted Christie told CNBC that the airline’s board of directors evaluated JetBlue’s latest offer, but questioned whether regulators would approve the deal. He said the board sees the partnership with Frontier as a “good deal.”
JetBlue Airlines said in a statement on Friday that it would “more thoroughly review and evaluate the revised terms of the Frontier-Spirit merger agreement and continue its” non-voting “campaign against frontier inferior transactions at a special meeting. I’m going. “
The new offer, announced late Friday, will raise the proposed reverse split fee from $ 100 million to $ 350 million in case the transaction is not approved by the regulatory agency. This is consistent with the reverse split rate offered by JetBlue. Frontier’s new offer includes a $ 2.22 upfront payment to Spirit shareholders.
Christie said the board is still concerned about the Northeast Alliance with JetBlue’s American Airlines. This will allow airlines to coordinate flights and book passengers on each other’s planes. The Justice Department last year appealed to cancel the partnership.
In after-hours trading on Friday, the shares of all three airlines remained almost unchanged.