May 17. Looks like we have a full-blown corporate takeover battle on our hands with the contest to buy Spirit Airlines. Spirit had first agreed to be purchased by Frontier Airlines, and a shareholder vote on that bid is scheduled later this month. Then JetBlue stepped in and made what it said was a higher bid, one that Spirit’s board rejected.
Now JetBlue has filed a “Vote No” proxy statement urging Spirit shareholders to vote against what it calls an inferior, high risk, and low value Spirit-Frontier transaction at Spirit’s upcoming special meeting. At the same time JetBlue began an all-cash, fully financed tender offer to acquire all of the outstanding shares of Spirit for $30 per share, without interest and less any required withholding taxes.
JetBlue said given the Spirit board of directors’ complete unwillingness to share the same necessary diligence information that was shared with Frontier, JetBlue is now offering to acquire Spirit for $30 per share in cash through a fully financed tender offer. The airline said this represents a 60 percent premium to the value of the Frontier transaction as of May 13, 2022. JetBlue also said it is fully prepared to negotiate in good faith a consensual transaction at $33, subject to receiving necessary diligence.
Source: Insider Travel