Shares of Spirit Airlines experienced a significant surge after JetBlue, the company set to acquire Spirit, announced its intentions to divest certain assets. This move is an attempt to overcome antitrust scrutiny surrounding the budget airline merger.
Surge in Spirit Airlines Stock
During afternoon trading, Spirit stock saw an impressive increase of nearly 13%, reaching $17.57 per share. However, it is worth noting that shares have experienced a 10% decline so far this year, prior to this recent upturn.
JetBlue’s Acquisition Deal Details
JetBlue has agreed to pay $33.50 in cash for each share of Spirit. Additionally, a prepayment of $2.50 per share was made once the deal received approval from Spirit shareholders. Alongside these terms, there is a monthly ticking fee of 10 cents that commenced in January.
Department of Justice Opposition
The Department of Justice has voiced concerns and challenged JetBlue’s acquisition of Spirit. Their argument suggests that the merger could negatively impact consumers and result in increased fares. The legal battle is scheduled to proceed to trial in federal court in Boston next month.
Written by: Will Feuer