JetBlue launches hostile bid for Spirit Airlines

STORY: JetBlue Airways on Monday (May 16) launched a hostile takeover bid for Spirit Airlines.

The move comes just days after an initial offer was rejected.

Spirit said there was little chance regulators would accept it.

JetBlue is now locked in a takeover battle with rival Frontier Group.

It says its new offer would better enable Spirit to compete with the “big four” U.S. carriers, which control nearly 80% of the country’s passenger market.

In a letter to Spirit shareholders, JetBlue offered $30 per share, and maybe more for a consensual transaction.

That’s significantly above the $21.66 offered by Frontier.

Investors certainly appeared to welcome the latest news.

Shares in Spirit soared almost a fifth in premarket trading.

The company’s shareholders are due to meet June 10 to vote on the proposed Frontier deal.

JetBlue says it has filed a proxy statement urging them to vote “no”.