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JetBlue goes hostile to buy Spirit Airlines after rejection

By Reuters | Rajesh Kumar Singh and David Shepardson | May 16, 2022

After their initial offer was rejected by Spirit Airlines, JetBlue has since launched a hostile all-cash takeover of the rival airline. Just 2 weeks earlier, JetBlue offered $33 per share but the offer was rejected based on the low likelihood of approval from regulators. This concern was sparked by a lawsuit filed by the U.S. Justice Department over the partnership between JetBlue and American Airlines Group Inc. The lawsuit is scheduled to go to trial in September but JetBlue CEO, Robin Hayes said the alliance is irrelevant to JetBlue’s ability to complete the Spirit acquisition. Hayes says Spirit’s board is prioritizing its relationships with Frontier over shareholder interests.

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Source: Reuters – Rajesh Kumar Singh and David Shepardson, May 16, 2022