🔮 Better than the Oracle? Our Fair Value found this +42% bagger 5 months before Buffett bought itRead More

JetBlue Bids For Spirit Airlines - Reports

Published 05/04/2022, 21:30
© Reuters
JBLU
-
SAVE
-
ULCC
-

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%.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.