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“Spirit believes JetBlue’s proposals and offer are a cynical try to disrupt Spirit’s merger with Frontier, which JetBlue views as a aggressive menace,” Spirit mentioned in a press release.
JetBlue launched its hostile takeover bid on Monday after Spirit earlier this month rebuffed its shock $33-a-share, all-cash acquisition bid. The tender offer from New York-based JetBlue was for $30 a share. Spirit’s board reviewed that offer and mentioned in a written statement Thursday that it decided it “is NOT in the very best pursuits of Spirit and its stockholders.”
JetBlue additionally urged Spirit shareholders to flip down the mix with Frontier at a June 10 Spirit stockholder assembly. JetBlue did not instantly remark.
Frontier and Spirit in February introduced a $2.9 billion cash-and-stock deal to mix into a reduction airline behemoth.
JetBlue says its $3.6 billion all-cash offer would “turbocharge” its progress. All three airways fly Airbus narrow-body planes, with dozens extra on order. Either mixture of the airways would create the fifth-largest U.S. provider.
Spirit has forged doubt on whether or not regulators would approve a tie-up with JetBlue, citing its partnership with American Airlines within the Northeast U.S. The Justice Department sued JetBlue and American over that settlement final yr with a trial date set for September.
Spirit shares had been down roughly 2% in premarket buying and selling Thursday, whereas JetBlue shares had been fractionally decrease.