Spirit Airlines Inc (NYSE: SAVE) shares are trading higher Tuesday after JetBlue Airways Corp (NASDAQ: JBLUE) increased its acquisition offer to $33.50 per share in cash, including a prepayment of $1.50 per share in cash.
The new offer is 6.3% higher or $2 per share more than the company's previous proposal on June 6. The new proposal also significantly increases the divestitures JetBlue would be willing to commit to making in order to obtain regulatory approval.
"After discussions with the Spirit team last week and further due diligence review, we are more convinced than ever that a JetBlue-Spirit transaction would create a true national competitor to the Big Four and deliver value to all of our stakeholders," said Robin Hayes, CEO of JetBlue.
JetBlue noted that it's prepared to "move quickly" to reach a merger agreement.
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SAVE Price Action: Spirit Airlines has traded between $34.63 and $15.92 over a 52-week period.
The stock was up 8.88% at $23.17 at press time, according to data from Benzinga Pro.
Photo: courtesy of Spirit Airlines.
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