JetBlue Modifies Spirit Proposal; Urges Spirit Shareholders Vote Against Frontier Offer

JetBlue Airways JBLU has again modified its proposal to acquire Spirit Airlines Inc SAVE based on discussions with Spirit shareholders.
JetBlue added a ticking fee, increased the reverse breakup fee to $400 million, and accelerated prepayment to $2.50 per share.
Related: JetBlue Submits Improved Proposal For Spirit Airlines At $33.50/share
The addition of a ticking fee mechanism provides shareholders with a monthly prepayment of $0.10 per share between January 2023 and the consummation or termination of the transaction. This represents an estimated aggregate ticking fee of up to $1.80 per share.
Related: Why Spirit Airlines Stock Is Moving Lower Today
"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," stated JetBlue CEO Robin Hayes.
"Spirit shareholders should not be misled by Spirit and Frontier's rosy projections of a potential future stock price, which are based on highly flawed assumptions that fail to account for the actual market conditions, including the need for pilot pay increases and elevated fuel costs," he added.
Price Action: JBLU shares are trading lower by 0.23% at $8.74 and SAVE higher by 5.14% at $23.73 during the premarket session on Tuesday.
Photo Via Wikimedia Commons

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