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JetBlue, which had earlier offered $33 per share, is locked in a
takeover battle for Spirit with Frontier Group Holdings and has
argued a deal will help better compete with the "Big Four" U.S.
airlines that control nearly 80% of the passenger market.
In a letter to Spirit shareholders on Monday, JetBlue offered
$30 per share and said it was ready to "negotiate in good faith
a consensual transaction at $33, subject to receiving necessary
diligence".
Spirit rejected the earlier offer, saying it had a low
likelihood of winning approval from regulators.
JetBlue said on Monday it had filed a "Vote No" proxy statement
urging Spirit shareholders to vote against the planned merger
with Frontier, which has offered $21.66 in cash and stock for
each share of the discount carrier.
Shares of Spirit rose more than 19% to $20.28 in premarket
trading.
Frontier and Spirit did not immediately respond to Reuters
requests for comment.
Spirit is scheduled to hold a shareholder meeting on June 10 to
vote on its proposed merger with Frontier.
(Reporting by Tanvi Mehta in Bengaluru; Editing by Aditya Soni
amd Sriraj Kalluvila)
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