• JetBlue hiked the reverse break-up fee to $400 million, from $350 million
JetBlue Airways Corp (NASDAQ: JBLU) on Tuesday again increased its offer for Spirit Airlines Inc (NYSE: SAVE) in an attempt to win the merger deal against Frontier Group Holdings Inc (NASDAQ: ULCC).
According to JetBlue’s new offer, Spirit would receive a reverse break-up fee of $400 million, up from $350 million if regulators don’t approve the deal. Spirit shareholders would get dividend of $2.50 a share, up from a previous offer of $1.50.
“After the Spirit Board’s failure to recognize our decisively superior offer, we’ve discussed our offer directly with Spirit shareholders and are now modifying our proposal in response to shareholders’ expressed interest, to include a monthly payment for shareholders, with the certainty of a significant cash premium at closing,” JetBlue’s CEO Robin Hayes said in a statement.
Frontier said on Tuesday that JetBlue’s new offer would lead to a “dead end.”
“JetBlue is not telling you the truth. A Spirit acquisition by JetBlue would lead to a dead end—a fact that no amount of money, bluster, or misdirection will change,” Frontier said in a statement.
Frontier on Friday had sweetened its offer by raising its cash offer by $2 per share to buy the rival ultra-low-cost airline.
Picture Credits: CNBC
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