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JetBlue launches hostile takeover for Spirit

JetBlue launches hostile takeover for Spirit



Spirit previously rejected JetBlue's takeover offer, favoring an earlier deal to merge with fellow budget airline Frontier. (Phelan M. Ebenhack via AP)London (CNN Business)JetBlue is going hostile in its effort to acquire Spirit (SAVE), the latest twist in an industry battle for the low-cost carrier.

Spirit previously rejected a takeover offer from JetBlue (JBLU), favoring an earlier deal to merge with fellow budget airline Frontier. Now, JetBlue is appealing directly to Spirit's shareholders, urging them to vote against the Frontier deal while launching its own all-cash offer of $30 per share.JetBlue said in a statement Monday that its offer represented a "60% premium to the value of the Frontier transaction." The airline added that it was willing to negotiate a $33-per-share deal if Spirit agrees to provide information about its business that JetBlue claims has been withheld. "The Spirit Board failed to provide us the necessary diligence information it had provided Frontier and then summarily rejected our proposal, which addressed its regulatory concerns, without asking us even a single question about it," JetBlue said in a letter addressed to Spirit shareholders. "The Spirit Board based its rejection on unsupportable claims that are easily refuted."Read More— This is a developing story. It will be updated.


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