Alaska Air Strikes Deal to Buy Virgin America for $2.6 Billion
Source: Wall Street Journal
Alaska Air Group Inc. said Monday morning that it had reached a deal to buy Virgin America Inc., winning a frenzied bidding war with rival JetBlue Airways Corp.
The parent company of Alaska Airlines said it would pay $57 a share for Virgin, a 47% premium to Fridays closing price, representing a total equity value of $2.6 billion. The Wall Street Journal had reported Sunday that Alaska won the bidding contest for Virgin, whose shares have risen lately on takeover speculation.
Bidding between Alaska and JetBlue was feverish, a person familiar with the matter had told the Journal, with the price continuing to rise. Alaska prevailed in part because of its clean balance sheet, which will allow it to more easily borrow funds for the acquisition, the person said.
A person familiar with the jousting said it was a fierce back and forth between the two sides, with multiple bids for a number of days. But ultimately, JetBlue put the pencil down because the price had gotten too high.
Read more: http://www.wsj.com/articles/alaska-air-strikes-deal-to-buy-virgin-america-1459764621
Initech
(100,107 posts)These mega mergers are becoming more and more insane.
brooklynite
(94,757 posts)onehandle
(51,122 posts)They love Virgin America. A little too much.
KeepItReal
(7,769 posts)I flew weekly to New Orleans (MSY) for 2 years from LAX and SFO and was dying to give Virgin America (VX) my client's money...
melm00se
(4,996 posts)is consistently rated the best US domestic airline.