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6/6, 1:32 PM (Source: TeleTrader)
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JetBlue presents improved bid to acquire Spirit

JetBlue has submitted an enhanced proposal to Spirit's Board of Directors to acquire all of the company's outstanding common stock, JetBlue said Monday in a statement. According to the release, the proposal offers Spirit shareholders "demonstrably higher value" and "more regulatory protections."

Under the new deal, JetBlue would give a $350 million "reverse breakup fee, payable to Spirit in the unlikely event the transaction is not consummated for antitrust reasons." Besides, the company would pay in advance $1.50 per share in cash (around $164 million) of the reverse breakup fee.

"Combining JetBlue and Spirit would create a true national competitor to the dominant legacy carriers, delivering low fares and a great experience for more customers, more opportunities and good paying jobs for Crewmembers and Team Members, and more value for stockholders," said Robin Hayes, Chief Executive Officer of JetBlue in a letter to the Board of Directors of Spirit.

At 7:29 am ET, Spirit Airlines shares were up 5.88% in premarket trading to sell for $21.86.

Baha Breaking News (BBN) / JG