JetBlue continues to press its intent to acquire Spirit Airlines. Today, the company issued a press release disclosing its new offer. According to the statement, the “enhanced proposal” offers shareholders greater security, superior value, and the upfront payment of 1.50 DOLLARS per share of the cash consideration.
The New York-based company issued a letter to Spirit’s Board of Directors. Through the document, it urges to “negotiate in good faith” to offer shareholders the highest possible value.
The new proposal is an update of previous proposals and offers, according to JetBlue, an enhanced reverse break-up fee of 350 million dollars if the deal could not be completed due to antitrust reasons. The figure would represent an increase of 150 million dollars over the one previously offered. In addition, it would be one hundred million dollars higher than the proposal of Frontier Airlines, the other company interested in acquiring Spirit.
In this regard, JetBlue had already communicated that it considered Frontier’s offer to be inferior because, among other things, it offers less value for the company, there is a greater overlap of routes, it does not include a divestment commitment and it does not ensure a compensatory payment in the event of a break-up.
Spirit’s shareholder meeting to decide the future of the company is scheduled for June 10th. On more than one occasion, its Board of Directors has spoken out against JetBlue’s purchase agreement, which they consider “hostile”. The same company body urged to vote against the deal and approve the merger with Frontier Airlines.
“We remain fully committed to acquiring Spirit”, JetBlue stated. “After listening to your stockholders and reaffirming with our Board the significant benefits to all stakeholders of combining JetBlue and Spirit, we are pleased to submit this improved proposal, which we believe Spirit stockholders will welcome”, they added.
“Accepting our improved proposal is in the best interests of your stockholders” they insisted. “We urge you to immediately engage with us in good faith to finalize definitive documentation with JetBlue reflecting the terms of our improved proposal”, they concluded.
On the other hand, the New York-based airline also appealed to seduce Spirit employees. Through another official press release, the company assured that if they manage to “move forward as one company”, it could offer them more jobs, better salaries, and better staff benefits. In addition, the company committed to “further grow” the existing bases in Orlando and Fort Lauderdale.
See also: JetBlue submits «enhanced superior proposal» to Spirit
