JetBlue (NASDAQ: JBLU) is down 0.57%. Attempting to entice Spirit Airlines Inc. away from its planned merger with Frontier Group Holdings Inc., Airways Corp. said on Monday that it had reduced its offer for the airline by 1.75 percent. ULCC dropped 4.20 percent.
If authorities refuse a proposal to acquire Spirit, JetBlue will pay a $350 million breakup fee, or nearly $3.20 per Spirit share, instead of $200 million.
If JetBlue’s hostile cash offer of $30 per share for Spirit is approved by the company’s shareholders, it will pay a $1.50 cash dividend to the company’s shareholders, bringing the total consideration for a takeover to $31.50 per share.
In order to allay fears of regulatory obstacles, Frontier this week added its own $250 million break-up fee to the Spirit deal, which shareholders will vote on Friday.
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