The stock market floor for the aviation sector is heated up recently on account of the acquisition battle going on. As per the latest news, the rivalry between the frontier and JetBlue Airlines for the acquisition of Spirit Airlines stocks is the main reason behind the increased interest among stock traders. At the start of the current month, JetBlue put all its cards on the table by upping its offer to make the merger go through.
Furthermore, the negotiators at JetBlue are also trying to influence the board of directors at Spirit Airlines to signal the green light for the deal on account of goodwill. It is worth noting that this is the third time that JetBlue has renewed its offer to acquire all the outstanding common shares of Spirit Airlines since March this year.
Several Airline Companies Make Bids to Acquire Spirit Airlines
The existing shareholders of Spirit Airlines are currently mulling over the matter of the bid offer made by Frontier Airlines. With days left before the voting event, the negotiators at JetBlue may be trying to sway the decision of Spirit shareholders in their favour. As a result of the active interest from investors, Spirit Airlines shares are currently appreciated by 5.37%.
Despite getting many rejections in the past, JetBlue management is not ready to give up on their efforts to acquire the rights of Spirit Airlines. A recent letter addressed to the board of directors by JetBlue states that the team is committed to making more efforts to acquire the rights of the airline.
JetBlue Airlines has incremented its break-up fee by $150 million, with the new prices set at $350 million. Furthermore, according to the latest statement by the management of JetBlue, their offer is $100 million higher in comparison to Frontier Airlines. It is worth noting that the aforementioned are payable to the stakeholders of Spirit Airlines in case the deal does not go as planned.
Last month, Spirit’s board of directors rejected a $3.6 billion bid offer by JB. On the other hand, Frontier CEO Barry Biffle recently told the media that he is positive that the board of Spirit is inclined to decide in favour of their bid that would reduce risks and increase the safety net for the shareholders of Spirit Airlines.