JetBlue once again raised its bid for Spirit Airlines to $ 33.50 in cash per share, valued at $ 3.7 billion, surpassing its June 6 offer of $ 31.50 per share, and the company announced Monday a starting price of $ 33. The offer includes a prepayment of $ 32 per share at the end of the contract and $ 1.50 per share in cash.
Spirit initially rejected JetBlue’s offer in favor of a February merger deal with Frontier, expressing concern that the JetBlue deal would not meet regulatory approval due to a pending antitrust lawsuit against JetBlue’s “Northeast Alliance” with American Airlines.
On Monday, JetBlue said it had made “additional regulatory commitments”, but it was still unwilling to leave the Northeast Alliance. In its June 20 proposal, JetBlue “expresses reasonable responsibility and will have a material adverse effect on the combined JetBlue and Spirit’s resources on JetBlue-Spirit, so as to limit the engagement of this isolation to limited activity.” This could materially and adversely affect the benefits expected under JetBlue’s Northeast Alliance. ”
The career is committed to a “proactive offer”
[U.S.] The Justice Department is considering a redundancy package that seeks to split all Spirit assets in New York and Boston, so as a result of this transaction, JetBlue will not increase its presence at our North East Alliance airports, as well as Gate and Fort Lauderdale-related assets. ”
The new JetBlue offer offers a বিপর 350 million free reverse break-up if the transaction is not completed due to distrust.
Spirit was scheduled to vote on its unification deal on June 10, but adjourned the special meeting until June 30.
JetBlue’s most recent proposal was submitted at the request of Spirit’s board of directors, and after reviewing JetBlue’s due diligence and concluding discussions with Spirit’s management team, according to JetBlue.