Spirit Airlines Plans To Initiate Discussions With JetBlue On $3.6B Bid

Spirit Airlines Inc SAVE Board has agreed to engage in discussions with JetBlue Airways JBLU concerning an all-cash transaction for $33/share.
Related: Spirit Airlines Gets Second Takeover Bid This Year: What Investors Should Know
Spirit remains bound by the terms of the merger agreement with Frontier Group Holdings, Inc. ULCC. Spirit's Board has not determined that JetBlue's proposal constitutes a Superior Proposal.
Related: Why Spirit Airlines Shares Are Taking Off
Spirit notes that there can be no assurance that the discussions with JetBlue will result in a transaction.
"We believe JetBlue is the best partner for Spirit, and we look forward to engaging with the Spirit Board to finalize our combination, to create a national low-fare challenger to the four large dominant U.S. carriers that will result in lower fares and better service for customers," commented Robin Hayes, CEO of JetBlue.
As per JetBlue's offer, Spirit shareholders would acquire Spirit for $33 per share in cash, implying a fully diluted equity value of $3.6 billion. The proposal represents a premium of 52% to Spirit's undisturbed share price on February 4, 2022, and a premium of 50% to Spirit's closing share price on April 4, 2022.
Price Action: SAVE shares are trading higher by 0.72% at $26.70, JBLU higher by 0.25% at $12.12, and ULCC higher by 0.85% at $10.70 during the premarket session on Friday.