AMERICAN low-cost carrier JetBlue Airlines announced today a hostile takeover bid for its rival Spirit Airlines.

“JetBlue has filed a ‘Vote No’ proxy statement and commenced an all-cash tender offer,” JetBlue said in a statement, which asks Spirit shareholders to reject a proposed merger with Frontier.

The company offered US$30 (RM132) a share.

Earlier this month, Spirit reiterated its support for a merger with Frontier Airlines, saying it concluded the US$3.6 billion JetBlue offer involved excessive regulatory risk.

Spirit said the Department of Justice’s challenge of JetBlue’s alliance with American Airlines raised the odds that a takeover of Spirit by JetBlue might get blocked.

“The Spirit board of directors has failed to act in the best interests of their shareholders by refusing to engage constructively on our clearly superior proposal to acquire Spirit,” JetBlue said in a statement today.

“The Spirit board failed to provide us the necessary diligence information they provided Frontier and then summarily rejected our proposal, which addressed their regulatory concerns, without asking us even a single question about it.

“They based their rejection on unsupportable claims that are easily refuted.” – AFP, May 16, 2022.