We always knew this was a possibility. Shortly after Spirit set a shareholder vote on June 10 to approve the Frontier merger, JetBlue has decided it isn’t willing to concede defeat. It has now put forth a hostile bid to try to appeal to the shareholders directly.
JetBlue has really done three things here.
- JetBlue has created the BLUE proxy card which will be sent to all Spirit shareholders to allow them to easily vote against the Frontier deal and align with JetBlue.
- JetBlue is encouraging all shareholders to exercise their so-called “apprasial rights” which would let a third party determine the fair value of the shares. If the Frontier deal is approved and the third party determines the value is higher than what was paid, then this would force higher cash payments.
- JetBlue is putting forth a new offer for $30 per share to the shareholders. It says it will go back up to the original $33 per share amount if the board allows it to do proper due diligence, which is clearly…
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