JetBlue wants to appease Spirit shareholders with an improved offer

The American low-cost company JetBlue Airways, which seeks to convince the shareholders of Spirit Airlines to prefer its takeover offer to that of Frontier Airlines, proposed Monday to pay more in the event of blocking by the competition authorities.

JetBlue launched a hostile takeover bid (OPA) for Spirit in mid-May after its rival’s board of directors rejected two previous offers, with Spirit believing in particular that the merger between the two companies would probably not obtain the approval of these authorities. Spirit prefers the proposal filed by Frontier Airlines at the beginning of February and embellished last week with the payment of a commission of 250 million dollars in the event that the merger is not approved.

Also with the approach, on June 10, of a general meeting during which the shareholders of Spirit must decide on the possible merger with Frontier, JetBlue raised the severance payment from 200 to 350 million dollars, the company said in a statement. And it agrees to pay $1.50 per share, or about $164 million, of that compensation in the form of dividends to Spirit shareholders as soon as they approve the merger. This raises the buyout offer from $30 to $31.50 per share.

This improvementreflects the seriousness of our commitment and underlines our confidence in the completion of this transaction“Writes the chief executive of JetBlue, Robin Hayes, in the press release. Spirit confirmed in a separate press release that it had received a new proposal and agreed to study it, in accordance with its fiduciary duties. On the New York Stock Exchange, the action of Spirit took 4.5% in the first trade of the session, that of JetBlue increased by 1.8% and that of Frontier by 1.6%.

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