Jetblue, Frontier battle for Spirit Airlines nears its end

JetBlue Airways was in a fight with Frontier Group Holdings for the right to acquire Spirit Airlines as the bidding war nears its end, as the low-cost airline was poised to end its battle with Frontier Group Holdings.

Both JetBlue and Frontier view the potential purchase of Spirit as an opportunity to expand domestic travel within their respective companies as the airline industry struggles with worker and aircraft shortages. The Spirit acquisition for either carrier would create the fifth-largest U.S. airline.

A ticking fee that would give Spirit shareholders a monthly prepayment of 10 cents per share between January 2023 and the deal closes will increase the overall value of the deal to $34.15 per share, according to the latest offer from JetBlue.

If the deal doesn't get regulatory approval, JetBlue boosted the breakup fee to Spirit by $50 million. After the transaction is approved, the carrier will pay $2.50 per share as a cash dividend to Spirit stockholders.

Frontier convinced shareholder advisory firm Institutional Shareholder Services to change its position and recommend Spirit shareholders support a merger between the two carriers. Glass Lewis, another proxy firm, has backed the Frontier deal.

Spirit shareholders are expected to vote on the Frontier merger deal on June 30.

Frontier CEO Barry Biffle said on Monday that the airline company's updated offer for Spirit will be enough to reach a merger deal with the carrier.

Biffle said that they're really excited about it and getting good feedback.

JetBlue is ready to fight to get a deal with the low-cost airline. On Monday, JetBlue urged Spirit shareholders to vote against the merger deal with Frontier.

JetBlue argued that the merger proposal offers Spirit shareholders more value and certainty.