Spirit Airlines has agreed to a $3.8 billion takeover offer from rival JetBlue Airways, ending an uphill battle for the airline that will create the largest U.S. airline.
The offer price of at least $33.50 per share represents a premium of nearly 38% over Thursday’s closing price for Spirit.
Including small monthly payments to Spirit shareholders from January next year until the deal closes, the offer could be as high as $34.15 per share.
Spirit also ended a deal with Bill Franke-backed Frontier Group, its rival with which it had agreed to a $2.9 billion offer in February.
Both JetBlue and Frontier have been locked in a fierce bidding war for Spirit to create a combined airline that would better compete with America’s biggest airlines at a time when the industry is facing a labor crisis and high fuel costs of aircraft.
Source: Capital
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