JetBlue bids for Spirit Airlines, potentially spoiling Spirit’s merger with Frontier

JetBlue Airways has offered to buy Spirit Airlines for $3.6b, throwing a wrench into Spirit’s plan to merge with Frontier Airlines and create a behemoth budget carrier. Spirit and Frontier, both low-cost airlines, agreed in February to merge in a deal that the companies said would save consumers about $1b a year. JetBlue offered $33 a share in cash, Spirit said on Tuesday. Frontier’s shares have fallen since it and Spirit announced their deal, reducing the value of its offer, which has an implied value of about $25 a share at current prices.<br/>JetBlue Airways has offered to buy Spirit Airlines for $3.6b, throwing a wrench into Spirit’s plan to merge with Frontier Airlines and create a behemoth budget carrier. Spirit and Frontier, both low-cost airlines, agreed in February to merge in a deal that the companies said would save consumers about $1b a year. JetBlue offered $33 a share in cash, Spirit said on Tuesday. Frontier’s shares have fallen since it and Spirit announced their deal, reducing the value of its offer, which has an implied value of about $25 a share at current prices. Spirit said its board planned to review the bid, which it described as “unsolicited,” and would “respond in due course.” After news of JetBlue’s offer broke on Tuesday, Frontier said that the acquisition would limit options and harm consumers. Either deal would be sure to face antitrust scrutiny from the Biden administration, which has taken a tough stance on mergers and partnerships. <br/>