JetBlue makes yet another offer for Spirit — but this time is different
Will the fourth time be the charm for JetBlue?
The New York-based airline on Monday made its fourth offer since March to acquire Spirit Airlines — and this time, Spirit had provided JetBlue with due diligence.
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Spirit signed a merger agreement with Frontier Airlines in February — an agreement that has been the preference of Spirit's management team and board — but one that is worth considerably less than each of JetBlue's four offers. In its latest offer, JetBlue offers $33.50 per share for Spirit, or about $3.7 billion total — about 68% more than the value of Frontier's merger. So far, Spirit has contended that JetBlue's offer was not better because it didn't believe it would win approval from regulators.
Earlier this month, Spirit shareholders were to vote on the Frontier merger deal — a vote that was postponed to June 30.
Then, last week, Spirit announced it was providing JetBlue with the same due diligence that Frontier was receiving. That lack of due diligence — sensitive information about Spirit — had long been JetBlue's top complaint about Spirit. JetBlue's CEO, Robin Hayes, accused the Spirit team of essentially walking away from them, and not providing enough information. Now, the field was level between Frontier and JetBlue — at least in this regard.
“After discussions with the Spirit team last week and further due diligence review, we are more convinced than ever that a JetBlue-Spirit transaction would create a true national competitor to the Big Four and deliver value to all of our stakeholders,” Hayes said in a statement on Monday. “Together, we will deliver lower fares and a better experience to more customers."
Hayes touted an "extremely positive reaction from Spirit stockholders" for its offer to acquire Spirit.
In a statement, Spirit said its board was reviewing JetBlue's new offer.
More: JetBlue vs Frontier: Who will win the battle over Spirit and why does it matter?
In addition to upping the sale price, JetBlue's new offer on Monday includes a commitment to divest more assets of JetBlue and Spirit to satisfy regulators. These assets could include items of great value to the combined company such as gates and slots at congested northeast airports. Previously, JetBlue committed to divest Spirit assets in New York and Boston — JetBlue's two largest markets.
In fact, it remains unclear if regulators will be satisfied with this deal. JetBlue aims to preserve its valuable Northeast Alliance with American Airlines — the airline's most important strategic partnership — but many analysts believe that regulators in the Justice Department's antitrust division will not allow JetBlue to both acquire Spirit and continue its cooperation with American.
Should regulators block JetBlue's deal on anti-trust grounds, it would pay a $350 million reverse break-up fee to Spirit.
But, as has been the case with this multi-month saga, it's anyone's guess what happens next.
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| 5X | Earn 5X Membership Rewards® Points for flights booked directly with airlines or with American Express Travel up to $500,000 on these purchases per calendar year. |
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Earn 80,000 Membership Rewards® Points after you spend $6,000 on purchases on the Card in your first 6 months of Card Membership.Earn 80,000 PointsAnnual Fee
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Why We Chose It
Sometimes it's worth a large investment to reap the benefits of a great credit card. That's exactly the case with the Amex Platinum card. In exchange for the annual fee, you'll unlock access to the Amex Membership Rewards program that let you access airline and hotel transfer partners, along with new lifestyle and travel credits. This card is also incredibly rewarding for travel purchases, helping you rack up a ton of Membership Rewards points for your next award trip.Pros
- The current welcome offer on this card is quite lucrative. TPG values it at $1,600.
- This card comes with a long list of benefits, including access to Centurion Lounges, complimentary elite status with Hilton and Marriott, at least $500 in assorted annual statement credits and so much more. (Enrollment required for select benefits.)
- The Amex Platinum comes with access to a premium concierge service that can help you with everything from booking hard-to-get reservations to finding destination guides to help you plan out your next getaway.
Cons
- The high annual fee is only worth it if you’re taking full advantage of the card’s benefits. Seldom travelers may not get enough value to warrant the cost.
- Outside of the current welcome bonus, you’re only earning higher rewards on specific airfare and hotel purchases, so it’s not a great card for other spending categories.
- The annual airline fee statement credit can be complicated to take advantage of compared to the broader travel credits offered by competing premium cards.
- Earn 80,000 Membership Rewards® Points after you spend $6,000 on purchases on the Card in your first 6 months of Card Membership.
- Earn 5X Membership Rewards® Points for flights booked directly with airlines or with American Express Travel up to $500,000 on these purchases per calendar year and earn 5X Membership Rewards® Points on prepaid hotels booked with American Express Travel.
- $200 Hotel Credit: Get $200 back in statement credits each year on prepaid Fine Hotels + Resorts® or The Hotel Collection bookings with American Express Travel when you pay with your Platinum Card®.
- $240 Digital Entertainment Credit: Get up to $20 in statement credits each month when you pay for eligible purchases with the Platinum Card® at your choice of one or more of the following providers: Peacock, Audible, SiriusXM, The New York Times, and other participating providers. Enrollment required.
- $155 Walmart+ Credit: Cover the cost of a $12.95 monthly Walmart+ membership with a statement credit after you pay for Walmart+ each month with your Platinum Card. Cost includes $12.95 plus applicable local sales tax.
- American Express has expanded The Centurion® Network to include 40+ Centurion Lounge and Studio locations worldwide. Now there are even more places your Platinum Card® can get you complimentary entry and exclusive perks.
- $200 Airline Fee Credit: Select one qualifying airline and then receive up to $200 in statement credits per calendar year when incidental fees are charged by the airline to your Card.
- $200 Uber Cash: Enjoy Uber VIP status and up to $200 in Uber savings on rides or eats orders in the US annually. Uber Cash and Uber VIP status is available to Basic Card Member only.
- $300 Equinox Credit: Get up to $300 back each year on an Equinox+ subscription, or any Equinox club memberships when you pay with your Platinum Card. Enrollment required. Learn more.
- $189 CLEAR® Credit: Breeze through security with CLEAR® Plus at 45+ airports nationwide and get up to $189 back per year on your membership (subject to auto-renewal) when you use your Card.
- $695 annual fee.
- Terms Apply.
- See Rates & Fees