JetBlue Offers To Buy Spirit Airlines For $3.6 Billion — Throwing Planned Spirit-Frontier Merger In DoubtJetBlue on Tuesday made a nearly
$3.6 billion "unsolicited offer" to purchase all outstanding shares of Spirit Airlines, Spirit announced in a news release, sending the
company's stock soaring but leaving the budget airline's future unclear.
The proposed all-cash deal would value Spirit at
$33 per share, far higher than the $23 implied value Spirit agreed to in February as part of a merger with Frontier Airlines.
The Frontier merger still faces a regulatory review process, and Spirit stockholders have not yet approved the move, which would combine the nation's
two biggest ultra-low-cost airlines.Spirit's board of directors will now
"evaluate JetBlue's proposal and pursue the course of action it determines to be in the best interests of Spirit and its stockholders," the company said.
Spirit's stock soared more than
28% and closed at $26.91 per share Tuesday afternoon.
