Why Spirit Airlines Shares Are Taking Off Today

Spirit Airlines Inc SAVE shares are trading higher Monday after JetBlue Airways Corp JBLU launched a hostile takeover bid for the discount airline. 

JetBlue announced that it has filed a "Vote No" proxy statement urging Spirit shareholders to vote against Spirit's proposed combination with Frontier Group Holdings Inc ULCC at the company's upcoming special shareholder meeting.

In addition, JetBlue commenced an all-cash, fully financed tender offer to acquire all of the outstanding shares of Spirit for $30 per share. JetBlue noted that it's fully prepared to negotiate in good faith a consensual transaction at $33, subject to receiving necessary diligence.

JetBlue launched a website called JetBlueOffersMore.com and issued a letter to Spirit shareholders detailing the benefits of its proposed transaction.

See Also: 30 Stocks Moving in Monday's Pre-Market Session

SAVE 52-Week Range: $15.92 - $37.19

The stock was up 14.8% at $19.50 at press time.

Photo: courtesy of Spirit Airlines.