U.S. Markets close in 5 hrs 16 mins
  • S&P 500

    3,754.33
    -64.50 (-1.69%)
     
  • Dow 30

    30,565.03
    -464.28 (-1.50%)
     
  • Nasdaq

    10,919.32
    -258.58 (-2.31%)
     
  • Russell 2000

    1,684.49
    -34.88 (-2.03%)
     
  • Crude Oil

    106.16
    -3.62 (-3.30%)
     
  • Gold

    1,812.00
    -5.50 (-0.30%)
     
  • Silver

    20.25
    -0.49 (-2.38%)
     
  • EUR/USD

    1.0435
    -0.0009 (-0.0835%)
     
  • 10-Yr Bond

    3.0180
    -0.0750 (-2.42%)
     
  • Vix

    30.18
    +2.02 (+7.17%)
     
  • GBP/USD

    1.2159
    +0.0036 (+0.3003%)
     
  • USD/JPY

    135.8780
    -0.6670 (-0.4885%)
     
  • BTC-USD

    19,011.95
    -1,091.47 (-5.43%)
     
  • CMC Crypto 200

    406.96
    -24.50 (-5.68%)
     
  • FTSE 100

    7,118.16
    -194.16 (-2.66%)
     
  • Nikkei 225

    26,393.04
    -411.56 (-1.54%)
     
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

JetBlue launches bid for hostile takeover of Spirit Airlines

In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

JetBlue is now spearheading a hostile takeover bid of Spirit Airlines after Spirit rejected its initial offer.

Video Transcript

RACHELLE AKUFFO: Welcome back, everyone. JetBlue is stepping up the pressure on Spirit Airlines. Just two weeks after Spirit rejected Jetblue's $3.6 billion acquisition offer, the airline is launching a hostile bid with a reduced offer and a letter sent directly to Spirit's shareholders, saying, quote, "Based on the clear superiority of our offer, we expected the Spirit board to engage constructively."

Now, Spirit plans to vote on the less lucrative deal with Frontier in June out of fear that antitrust regulators won't approve a deal with JetBlue. JetBlue is offering a $200 million reverse breakup fee if their deal isn't approved. Spirit's stock soared about 20% on the news, and it's now up over 12%, over 12 and 1/2%, as you can see.