Spirit Airlines 2025 Takeover Battle: JetBlue's $34.15 Per Share Offer Rejected
In 2025, Spirit Airlines declined JetBlue's enhanced $34.15 per share takeover bid, citing antitrust issues, and urged shareholders to support a merger with Frontier Group instead.
Spirit Airlines has once again turned down JetBlue Airlines' improved takeover offer, emphasizing ongoing antitrust concerns and encouraging shareholders to back a merger with its competitor, Frontier Group, at the upcoming vote.
JetBlue's latest bid values Spirit at $34.15 per share, reflecting a substantial 51% premium over Spirit's current stock price. Additionally, JetBlue increased the breakup fee to $400 million, up by $50 million, should regulatory approval not be secured.
Spirit CEO Ted Christie stated that despite the increased offer, JetBlue's proposal fails to alleviate the board's apprehensions regarding regulatory hurdles that could block the merger.
Frontier's competing cash-and-stock offer stands at $22.03 per share, considerably lower than JetBlue's bid. Both airlines aim to merge and form the fifth-largest U.S. carrier, poised to challenge the dominant legacy airlines.
Proxy advisory firm ISS remains hesitant to revise its recommendation, advising Spirit shareholders to support the Frontier merger ahead of tomorrow's critical vote.
Spirit Airlines' shares (SAVE) experienced a 1.1% increase, closing at $22.82 per share recently.
Caleb Silver, Editor-in-Chief of Investopedia, commented, "JetBlue and its investors risk more if Spirit shareholders reject the bid, as JetBlue lacks a clearer growth trajectory without acquiring an airline like Spirit, which adds valuable routes and aircraft to compete effectively against the major U.S. carriers."
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