JetBlue Launches
Hostile Takeover Bid, to Acquire Spirit Airlines .
The budget airline initiated the maneuver on May 16.
It follows Spirit Airlines' rejection of JetBlue's purchase offer that the company made earlier in May.
Spirit is already in the midst of $2.9 billion deal with Frontier Airlines.
JetBlue attempted to persuade Spirit shareholders to reject the deal with Frontier by offering $30 a share.
As of May 13, Spirit shares were valued at just under $17.
If the Spirit shareholders vote against the transaction with Frontier and compel the Spirit Board to negotiate with us in
good faith, , JetBlue Statement, via CNBC.
we will work towards a consensual transaction at $33 per share, subject to receiving the information to support it, JetBlue Statement, via CNBC.
We’re also offering to buy their shares, now at a price slightly lower than our original offer ... , JetBlue Statement, via CNBC.
... because the Spirit Board didn’t follow a fair process or allow us to look ‘under the hood’ like they allowed Frontier to do, Robin Hayes, JetBlue CEO, via CNBC.
In a note to employees, JetBlue CEO Robin Hayes speculated about the reasons for Spirit's
rejection of the offer. .
Our guess is that there are a lot of historical ties and personal relationships between the controlling shareholder of Frontier and some of the Spirit Board members who agreed to the Frontier deal, Robin Hayes, JetBlue CEO, via CNBC.
Transportation Secretary Pete Buttigieg commented on the development on May 16.
The most important thing is to make sure the American people are served well by a healthy airline sector, and part of a healthy airline sector [...]
is healthy competition, Pete Buttigieg, Transportation Secretary,
via CNBC.
Whichever company is able to acquire Spirit, the merger means the creation of the fifth largest U.S. airline.