© Reuters. FILE PHOTO: A logo of low cost carrier Spirit Airlines is pictured on an Airbus plane in Colomiers near Toulouse, France, November 6, 2018. REUTERS/Regis Duvignau//File Photo
(Reuters) -JetBlue Airways said Monday it had boosted its takeover offer for Spirit Airlines (NYSE:) to $33.50 as it works to convince the ultra-low cost carrier to accept its offer over rival Frontier Airlines’ proposal.
Spirit said last week it was in talks with JetBlue over its offer and expected to decide on the proposal by June 30. JetBlue said its proposal represents a 68% premium to the implied value of the Frontier stock and cash transaction.
The new proposal includes what JetBlue termed a “stronger divestiture commitment” to complete the Spirit deal but does not include abandoning JetBlue’s Northeast Alliance with American Airlines (NASDAQ:).