{"id":441136,"date":"2022-05-02T19:10:10","date_gmt":"2022-05-02T16:10:10","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/spirit-rejects-jetblue-takeover-offer-on-antitrust-risks\/"},"modified":"2022-05-02T19:10:10","modified_gmt":"2022-05-02T16:10:10","slug":"spirit-rejects-jetblue-takeover-offer-on-antitrust-risks","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/spirit-rejects-jetblue-takeover-offer-on-antitrust-risks\/","title":{"rendered":"#Spirit rejects JetBlue takeover offer on antitrust risks"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2f00bb05960\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2f00bb05960\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/spirit-rejects-jetblue-takeover-offer-on-antitrust-risks\/#%E2%80%9CSpirit_rejects_JetBlue_takeover_offer_on_antitrust_risks%E2%80%9D\" >&#8220;Spirit rejects JetBlue takeover offer on antitrust risks&#8221;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9CSpirit_rejects_JetBlue_takeover_offer_on_antitrust_risks%E2%80%9D\"><\/span>&#8220;Spirit rejects JetBlue takeover offer on antitrust risks&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div>\n<aside class=\"single__inline-module alignleft\">\n<\/aside>\n<p>Ultra low cost carrier Spirit Airlines\u00a0on Monday rejected\u00a0JetBlue\u00a0Airways\u2019\u00a0$33-per-share takeover offer, saying it had a low likelihood of winning <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>roval from government regulators.<\/p>\n<p>JetBlue\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/ir.spirit.com\/news-releases\/news-details\/2022\/Spirit-Airlines-Board-of-Directors-Reiterates-Support-for-Merger-with-Frontier-Airlines\/default.aspx\">on Friday had enhanced<\/a>\u00a0its offer \u2014 but not its $33 per share price \u2014 and promised a $200 million reverse break-up fee \u2014 or $1.80 per Spirit share \u2013 if the deal does not go through for antitrust reasons.\u00a0JetBlue\u00a0disclosed the new offer on Monday.<\/p>\n<p>JetBlue\u2019s offer is significantly higher than the current roughly $21.88 per\u00a0share value of the cash and stock bid from Frontier\u00a0made in February.<\/p>\n<p>Spirit shares fell 8.9% to $21.50, while Frontier was down 2.9% to $10.32 and\u00a0JetBlue\u00a0shares rose 1% to $11.11<\/p>\n<p>Frontier and\u00a0JetBlue\u00a0are in a battle for Spirit to better compete with legacy carriers, or the \u201cbig four\u201d airlines that control nearly 80% of the US passenger market.<\/p>\n<p>Frontier had no im<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a>te comment<\/p>\n<p>The Justice Department and six states in September sued to unwind\u00a0JetBlue\u00a0and American Airlines\u2019 \u201cNortheast Alliance\u201d partnership, alleging the agreement would lead to higher fares in busy northeastern US airports.<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/spirit-rejects-jetblue2.jpg?w=1024\" alt=\"JetBlue plane\" class=\"wp-image-22108756\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/spirit-rejects-jetblue2.jpg?quality=75&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/spirit-rejects-jetblue2.jpg?quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/spirit-rejects-jetblue2.jpg?quality=75&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>JetBlue\u2019s offer is significantly higher than the current roughly $21.88 per share value of the cash and stock bid from Frontier made in February.<\/figcaption><figcaption><span class=\"credit\">Getty Images<\/span><\/figcaption><\/figure>\n<p>\u201cWe believe a combination of\u00a0JetBlue\u00a0and Spirit has a low probability of receiving antitrust clearance so long as\u00a0JetBlue\u2019s Northeast Alliance (NEA) with American Airlines remains in existence,\u201d Spirit said in a letter to\u00a0JetBlue\u00a0Chief Executive Robin Hayes on Monday.<\/p>\n<p>The Justice Department declined to comment.<\/p>\n<p>JetBlue\u00a0said on Monday that it would offer a remedy package to address regulatory concerns \u201cthat includes the divestiture of all Spirit assets in New York and Boston so that\u00a0JetBlue\u00a0does not increase its presence in the airports covered by the NEA. The package would also include gates and assets at other airports, including Fort Lauderdale.\u201d<\/p>\n<p>Hayes told Reuters in early April he believed the court challenge over the NEA would be resolved before the Justice Department determined the fate of a\u00a0JetBlue\u00a0Spirit tie-up.<\/p>\n<p>\u201cWe\u2019ve had unprecedented amounts of consolidation, which the DOJ has approved and now it\u2019s about how do we make sure the rest of us can continue to discipline the legacy carriers and create that competition,\u201d Hayes told Reuters in April.\u00a0<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/spirit-rejects-jetblue1.jpg?w=1024\" alt=\"Frontier Airlines plane\" class=\"wp-image-22108758\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/spirit-rejects-jetblue1.jpg?quality=75&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/spirit-rejects-jetblue1.jpg?quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/spirit-rejects-jetblue1.jpg?quality=75&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>Frontier and JetBlue are in a battle for Spirit to better compete with legacy carriers, or the \u201cbig four\u201d airlines that control nearly 80% of the US passenger market.<\/figcaption><figcaption><span class=\"credit\">AP<\/span><\/figcaption><\/figure>\n<p>Spirit said it believes the Justice Department and a court \u201cwill be very concerned that a higher-cost\/higher fare airline would be eliminating a lower-cost\/lower fare airline in a combination that would remove about half of the ULCC (ultra low cost carrier) capacity in the United States.\u201d<\/p>\n<p>Spirit said in its April 25 response to\u00a0JetBlue\u00a0that it proposed \u201crequiring\u00a0JetBlue\u00a0to take any action required to obtain regulatory clearance, which specifically included abandoning the NEA at closing.\u201d<\/p>\n<p>Spirit added that \u201cgiven this substantial completion risk, we believe\u00a0JetBlue\u2019s economic offer is illusory, and Spirit\u2019s board has not found it necessary to consider it.\u201d\n                        <\/p><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/nypost.com\/2022\/05\/02\/spirit-rejects-jetblue-takeover-offer-on-antitrust-risks\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;Spirit rejects JetBlue takeover offer on antitrust risks&#8221; Ultra low cost carrier Spirit Airlines\u00a0on Monday rejected\u00a0JetBlue\u00a0Airways\u2019\u00a0$33-per-share takeover offer, saying it had a low likelihood of winning approval from government regulators. JetBlue\u00a0on Friday had enhanced\u00a0its offer \u2014 but not its $33 per share price \u2014 and promised a $200 million reverse break-up fee \u2014 or $1.80&#8230;<\/p>\n","protected":false},"author":1,"featured_media":441137,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/spirit-rejects-jetblue.jpg?quality=75&strip=all&w=1024","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[128735,95696,82494,70584,83204],"class_list":["post-441136","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-5-2-22","tag-frontier-airlines","tag-jetblue","tag-mergers-acquisitions","tag-spirit-airlines"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/441136","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=441136"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/441136\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/441137"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=441136"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=441136"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=441136"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}