JetBlue Airways launches hostile takeover bid for Spirit Airlines.

US carrier JetBlue Airways has launched a hostile all-cash takeover bid for rival Spirit Airlines.

JetBlue offered Spirit shareholders $30 per share but stated it was willing to "negotiate in good faith a consensual transaction at $33", subject to receiving necessary diligence.

The carrier said it would operate Spirit under the JetBlue brand and does not believe that any divestitures would be needed but promised to pay a $200.0m reverse breakup fee if the deal was blocked for antitrust reasons.

JetBlue also filed a "Vote No" proxy statement, urging Spirit shareholders to vote against the airline's planned merger with Frontier Group Holdings.

Chief executive Robin Hayes said: "The combination of our two companies would create a leading player best positioned to serve our customers by offering increased flight schedules and more competitive fares."

As of 1350 BST, JetBlue shares were down 1.59% in pre-market at $9.90 each, while Spirit's stock shot up 15.43% to $19.60 per share.

Reporting by Iain Gilbert at Sharecast.com