By Sam Boughedda
Investing.com -- Spirit Airlines Inc (NYSE:SAVE) shares surged in the final 30 minutes of trading on Tuesday after a report from the New York Times said fellow carrier JetBlue Airways Corp (NASDAQ:JBLU) has launched a bid for the company.
The report, citing three people with knowledge of the matter, said JetBlue has made a $3.6 billion offer to acquire the budget carrier.
A potential deal could spoil Spirit's planned merger with fellow budget airline Frontier Group Holdings Inc (NASDAQ:ULCC). At the time, Frontier said the combination with Spirit would see the combined company "accelerate investment in innovation and growth and compete even more aggressively, especially against the dominant “Big Four” airlines, among others."
However, the supposed bid from JetBlue will see it pay $33 per share in cash, an approximately 40% premium to Frontier's cash and share offer for Spirit.
The NY Times said Spirit's board has yet to make a decision on which deal to pursue but plans to review JetBlue's bid in detail.
Spirit stock closed Tuesday's session up 22.42%.