Spirit Airlines Rises on Red Wall Street After Takeover Bid

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Spirit Airlines rose more than 7 percent in stock market value on the stock markets in New York on Monday. The price jump followed a hostile takeover bid from competitor JetBlue for the airline.

 

Spirit Airlines had rejected an earlier offer from JetBlue because, according to the company, there is little chance that the authorities will agree to a deal between the two budget airlines.

Spirit’s board has also already agreed to a merger with industry peer Frontier Group, willing to pay $21.66 per share for Spirit. However, JetBlue (minus 2.2 percent) calls on Spirit’s shareholders to vote against the merger plan and offers $30 a share for Spirit. The company also states that it wants to increase the acquisition price to $ 33 per share if Spirit wants to enter into friendly negotiations. Frontier, the owner of Frontier Airlines, climbed 4.6 percent.

Investors were also particularly looking forward to the impact of high inflation on US retail sales, which are scheduled for Tuesday. The supermarket groups Walmart and Target will also look at the books on Tuesday. Concerns about high inflation and the Federal Reserve’s interest rate hikes to contain price increases have closed the Dow Jones index with a weekly loss for seven weeks in a row.

Shortly after opening, the Dow was 0.3 percent lower at 32,106 points. The broad S&P 500 fell 0.6 percent to 4001 points, and tech gauge Nasdaq lost 1.1 percent to 11,678 points.

McDonald’s fell 0.4 percent. The fast-food chain has decided to sell all its activities in Russia because of the war in Ukraine. The group had previously closed its 850 Russian branches until further notice. The departure from Russia means a financial loss for the creator of the Big Mac and the McFlurry. So converted, it may be more than 1.3 billion euros in depreciation.

Twitter went down more than 4 percent. Twitter is accusing its potential buyer Elon Musk of not complying with a nondisclosure agreement regarding monitoring fake accounts with the social media platform. Shares fell nearly 10 percent on Friday after the Tesla CEO decided to pause the acquisition deal because he wanted more clarity about the number of spam accounts with the messaging service.

Streaming service Netflix benefited from an advice increase by Wedbush and rose 3.7 percent.

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