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JetBlue sweetens offer for Spirit Airlines


JetBlue Airlines plane seen near Spirit Airlines aircraft at Fort Lauderdale-Hollywood International Airport, Fort Lauderdale, Florida on May 16, 2022. 

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JetBlue AirwaysOn Monday, the company offered to purchase smaller competitors. Spirit AirlinesAs competition for low-cost carriers increases, this is a good sign.

JetBlue now offers Spirit’s shareholders $31.50 per Spirit Share in Cash. The cash is $30 at deal close, and $1.50 as a prepayment for reverse break-up fees.

If Spirit shareholders approve of the JetBlue Spirit deal, $1.50 per share is paid in cash as a dividend.

JetBlue offered $30 per share in an earlier promotion.

Spirit Airlines shares rose 6.2% to $22 Premarket

JetBlue has also increased the fee for reverse dissolution by $150million to $350million. This is due to Spirit shareholders in the event that the deal fails to go through because of regulatory reasons.

A few days later, we received a better proposal. Frontier Group HoldingsIn an effort to save Spirit’s $2.9 billion purchase, the company agreed to pay $250 million breakup fees.