It's battle in the American skies. The US low-cost airline JetBlue Airways has launched a hostile takeover bid on rival Spirit Airlines, which had rejected plans to acquire JetBlue for $33 a share in favor of a merger with Frontier Airlines.
JeBlue offered $30 per share, all cash, and filed a document in which the group is asking Spirit's shareholders to vote "no" to the proposed merger with Frontier during the meeting scheduled for 10 June.
“JetBlue offers more value with a cash award, more certainty and more benefits for all stakeholders,” JetBlue CEO Robin Hayes wrote in a letter sent to Spirit shareholders. “Frontier offers less value, more risk, no commitment on assignments”, he adds.
The company also said the Spirit acquisition would give it access to a large fleet of Airbus aircraft, trained pilots, and the ability to better compete against the U.S. "Big Four," airlines that control most of the U.S. market.
JetBlue has finally made it known that its previous offer of $33 a share is still on the table if Spirit decides to negotiate. "If Spirit's shareholders vote against the Frontier transaction and compel the Spirit board to deal with us in good faith, we will work towards an amicable settlement at $33 a share," JetBlue said.
In this context it should be noted that the company has a partnership with American Airlines, which could represent an obstacle for the approval of the transaction by the Antitrust.
The reaction of Wall Street was immediate where the JetBlue stock lost 4,77% of its value to 9,58 dollars per share, while Spirit shares rise 12,2% breaking through the $19 mark.
