JetBlue makes a hostile takeover approach for Spirit Airlines

JetBlue Airways Corp. filed a hostile $3.3 billion cash bid for Spirit Airlines Inc.

It appealed directly to shareholders in an attempt to beat Frontier Group Holdings Inc.’s rival offer for the discount carrier.

The JetBlue offer is worth $30 per share, which is $3 less than the company’s initial offer, which was rejected by Spirit’s board two weeks ago.

If a “consensual transaction” is reached, the New York-based business said it will pay the higher amount.

JetBlue’s current offer represents a 77 percent premium over Spirit’s Friday closing price.

“This signals that the original JetBlue offer was a serious one, as opposed to one just trying to scuttle the Spirit-Frontier deal,” said Savanthi Syth, a Raymond James Financial Inc. analyst.

Spirit shares were up 8.4% to $18.40.

JetBlue’s stock plummeted 2.5 percent, while Frontier’s surged 4%.

The move is the latest twist in Spirit’s takeover battle in Miramar, Florida.

JetBlue sees the transaction as its best chance for near-term development, despite the fact that it would require integrating its own full-service product with a business model predicated on giving rock-bottom prices and charging for everything else.

Spirit turned down JetBlue’s earlier unsolicited $3.6 billion offer, citing concerns that antitrust issues would prevent the deal from going through, and instead stuck to its $2.9 billion deal with Denver-based Frontier.

Requests for comment from Spirit and Frontier were not immediately returned.

Spirit management’s proposed merger with Frontier, which includes stock, is “high risk and low value,” according to JetBlue.

It is encouraging shareholders to reject it at a meeting on June 10.