JetBlue goes hostile in bid for Spirit after 2 rejections

A Frontier Airlines aircraft flying over Gloster City, N.J., approaches Philadelphia International Airport, Oct. 22, 2021. Spirit Airlines' board still supports Frontier Airlines' $2.9 billion takeover bid for the airline, saying it determined JetBlue's competing $3.6 billion offer isn't a superior proposal. Last month Spirit said that after speaking with financial and legal advisers, its directors believed JetBlue’s offer could “reasonably” turn out to be the better of the two deals. But on Monday, May 2, 2022 the company announced that it was determined that JetBlue's offer “is not reasonably capable of being consummated." (AP Photo/Matt Rourke)

A traveler wearing a protective mask, due to the coronavirus outbreak, walks through the nearly empty JetBlue terminal at Logan Airport in Boston, Friday, May 29, 2020. JetBlue is further dialing back its growth plans after struggling with a high number of canceled flights. The company said Tuesday, April 26, 2022, that it lost $255 million in the first quarter but saw strong demand for travel, which pushed revenue higher. (AP Photo/Charles Krupa)

JetBlue is going hostile in its bid for Spirit Airlines and asking shareholders of the low-cost carrier to reject a proposed $2.9 billion acquisition by Frontier Airlines.

JetBlue is going straight to shareholders of the Florida airline in hopes of pushing its board to the negotiating table. Shares of spirit jumped 17% before the opening bell Monday.

Spirit has rejected JetBlue's $3.6 billion offer for the Florida budget carrier twice already, saying antitrust regulators are unlikely to approve an offer from the New York City airline because of its alliance with American Airlines in the Northeast. The Justice Department is suing to block that deal.

Shareholders of Spirit Airlines Inc. are scheduled to vote June 10 on the Frontier bid favored by the Spirit board.

JetBlue said Monday that Frontier's offer is high risk and low value. It made its initial buyout bid for Spirit on April 5, offering $33 per share in cash.

JetBlue is offering $30 a share in cash in its tender offer, but would be open to paying its initial offer price of $33 a share if the board at Spirit enters talks and provides data that JetBlue has requested, the company said. JetBlue said the tender price reflected what JetBlue called Spirit’s unwillingness to share necessary information.

“JetBlue offers more value – a significant premium in cash – more certainty, and more benefits for all stakeholders," JetBlue CEO Robin Hayes wrote in a letter.

The bid from Frontier Group Holdings Inc. would let Spirit shareholders keep 48.5% of the combined airline. It would give Spirit shareholders 1.9126 shares of Frontier plus $2.13 in cash for each of their Spirit shares.

Shares of JetBlue Airways Corp. fell slightly while shares of Frontier's climbed more than 3%.