JetBlue sweetens offer for Spirit Airlines

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A JetBlue Airlines plane near a Spirit Airlines plane at the Fort Lauderdale-Hollywood International Airport on May 16, 2022 in Fort Lauderdale, Florida. 

Joe Raedle | Getty Images News | Getty Images

JetBlue Airways on Monday improved its offer to buy smaller rival Spirit Airlines, as the battle for the low-cost carrier intensifies.

Under the improved proposal, JetBlue offers Spirit’s shareholders $31.50 per share in cash, which is comprised of $30 per share at deal close and the prepayment of $1.50 per share of the reverse break-up fee.

The $1.50 per share will be paid as a cash dividend if Spirit shareholders vote for the JetBlue-Spirit deal.

JetBlue’s earlier offer was for $30 per share.

Shares of Spirit Airlines jumped 6.2% to $22 premarket.

JetBlue also raised the reverse break-up fee by $150 million to $350 million, which is payable to Spirit shareholders in case the deal falls through due to regulatory reasons.

The improved proposal comes days after Frontier Group Holdings agreed to pay a break-up fee of $250 million in a bid to salvage its $2.9 billion acquisition of Spirit.

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