JetBlue Attempting Takeover of Spirit Airlines

After their merger was rejected, JetBlue is going for a hostile takeover.

After their merger was rejected, JetBlue is going for a hostile takeover.

Earlier this month, airline carrier JetBlue attempted a merger with fellow carrier Spirit Airlines, offering to pay $33 per for all of the latter’s shares. Spirit turned them down, intending to pursue a partnership with Frontier Airlines instead. This morning, JetBlue deployed another deal to Spirit, and this time, they are not asking, but telling.

JetBlue has launched a hostile takeover effort of Spirit, going over the company’s head to directly offer its shareholders $30 per share to vote against partnering with Frontier Airlines. If the shareholders can convince Spirit to side with JetBlue, they are also willing to stick to the initial promised price of $33 per share.

“If the Spirit shareholders vote against the transaction with Frontier and compel the Spirit Board to negotiate with us in good faith, we will work towards a consensual transaction at $33 per share, subject to receiving the information to support it,” JetBlue said in a statement.

“We’re also offering to buy their shares, now at a price slightly lower than our original offer because the Spirit Board didn’t follow a fair process or allow us to look ‘under the hood’ like they allowed Frontier to do,” JetBlue CEO Robin Hayes said in a note to employees.

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