Frontier Shares Surged 9% as Spirit Airlines Agrees to $3.8 Billion Offer From JetBlue
Tiger Newspress2022-07-28
Frontier shares surged 9% as Spirit airlines agrees to $3.8 billion offer from Jetblue. Shares of Spirit Airlines gained 3.62% and Jetblue slid 1.67%.
Spirit Airlines Inc on Thursday agreed to a $3.8 billion buyout offer from low-cost rival JetBlue Airways Corp , ending a drawn-out battle for the carrier that would help create the fifth-largest U.S. airline.
The offer price of at least $33.50 per share represents a premium of nearly 38% to Spirit's Thursday closing price.
Including a "ticking fee", or small monthly payments to Spirit shareholders from January next year until the deal is completed, the offer can go up to $34.15 per share.
Spirit also terminated a deal with Bill Franke backed-Frontier Group Holdings Inc (ULCC.O), its rival suitor with whom it had agreed to a $2.9-billion offer in February before JetBlue jumped into the fray. read more
Both JetBlue and Frontier were locked in an intense bidding war for Spirit to create a combined airline that will better compete with legacy U.S. carriers at a time when the industry faces labor crunch and high jet fuel costs.
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