A Spirit Airlines airplane taxis for takeoff at Denver International Airport in Denver, Colorado, U.S., on Monday, Feb. 7, 2022.
Michael Ciaglo | Bloomberg | Getty Images
Spirit Airlines’ board on Thursday urged its shareholders to reject JetBlue Airways’ hostile takeover try, citing regulatory hurdles and accusing the airline of making an attempt to derail its deliberate merger with fellow low cost service Frontier Airlines.
“Spirit believes JetBlue’s proposals and offer are a cynical attempt to disrupt Spirit’s merger with Frontier, which JetBlue views as a competitive threat,” Spirit stated in an announcement.
JetBlue launched its hostile takeover bid on Monday after Spirit earlier this month rebuffed its shock $33-a-share, all-cash acquisition bid. The tender supply from New York-based JetBlue was for $30 a share. Spirit’s board reviewed that provide and stated in a written assertion Thursday that it decided it “is NOT in the best interests of Spirit and its stockholders.”
JetBlue additionally urged Spirit shareholders to show down the mixture with Frontier at a June 10 Spirit stockholder assembly. JetBlue did not instantly remark.
Frontier and Spirit in February introduced a $2.9 billion cash-and-stock deal to mix into a reduction airline behemoth.
JetBlue says its $3.6 billion all-cash supply would “turbocharge” its development. All three airways fly Airbus narrow-body planes, with dozens extra on order. Either mixture of the airways would create the fifth-largest U.S. service.
Spirit has forged doubt on whether or not regulators would approve a tie-up with JetBlue, citing its partnership with American Airlines within the Northeast U.S. The Justice Department sued JetBlue and American over that settlement final yr with a trial date set for September.
Spirit shares had been down roughly 2% in premarket buying and selling Thursday, whereas JetBlue shares had been fractionally decrease.