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JetBlue launches bid for hostile takeover of Spirit Airlines

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JetBlue is now spearheading a hostile takeover bid of Spirit Airlines after Spirit rejected its initial offer.

Video Transcript

RACHELLE AKUFFO: Welcome back, everyone. JetBlue is stepping up the pressure on Spirit Airlines. Just two weeks after Spirit rejected Jetblue's $3.6 billion acquisition offer, the airline is launching a hostile bid with a reduced offer and a letter sent directly to Spirit's shareholders, saying, quote, "Based on the clear superiority of our offer, we expected the Spirit board to engage constructively."

Now, Spirit plans to vote on the less lucrative deal with Frontier in June out of fear that antitrust regulators won't approve a deal with JetBlue. JetBlue is offering a $200 million reverse breakup fee if their deal isn't approved. Spirit's stock soared about 20% on the news, and it's now up over 12%, over 12 and 1/2%, as you can see.

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