JetBlue, the New York-based airline, upped its prepaid cash dividend to $2.50 a share, up from $1.50. Also, it increased its break-up fee from $350 million to $400 million, which it would owe Spirit (SAVE) if antitrust officials rejected the merger. Between January 2023 and the agreement’s conclusion, JetBlue gave Spirit stockholders a monthly prepayment of 10 cents a share, bringing the total deal value to $34.15 per share.
In response to “shareholder interest,” JetBlue CEO, Robin Hayes said the company has revised its plan.
A “revised arrangement that is ultimately better for Frontier and its controlling shareholder than it is for Spirit stockholders” was authorized by the “entrenched Spirit Board,” Hayes said in a letter to investors Monday.
Antitrust issues would be raised if Frontier purchased Spirit, according to JetBlue’s statements. Frontier released a statement on Tuesday to “put the record right.”
That JetBlue had previously claimed that Spirit was “hiding behind ‘false and deceptive antitrust issues to reject JetBlue’s planned merger.'” Frontier noticed this. According to Frontier, “JetBlue is not giving you the truth”. In the end, “no amount of money, bravado, or misdirection would alter the reality that a JetBlue takeover of Spirit will lead to a dead-end – a truth that no amount of money, bluster, or misdirection will change.”
Frontier increased their offer on Friday.
Frontier just offered Spirit a better deal. Its Shares have fallen.
Spirit Airlines shareholders should approve to combine with Frontier Airlines, according to Institutional Shareholder Services (ISS).
Spirit has increased its cash offer by $2 per share and increased the breakup fee to $350 million. In addition, Frontier said that it will prepay $2.22 per share in cash to shareholders. Institutional Shareholder Services, a major proxy advice company, endorsed the proposal.
On June 30, Spirit shareholders will vote on the merger agreement with Frontier.