According to a regulatory filing, Spirit Airlines Inc. said on Friday that Frontier Group Holdings had raised its cash offer by $2 per share to buy the airline.
The Florida-based ultra-low-cost carrier Spirit has been the subject of a bidding war between JetBlue and Frontier Group Holdings Inc for weeks now.
Frontier Airlines sweetens its offer to combine with fellow budget carrier Spirit Airlines.
The new offer for $4.13 per share is $2 per share higher than Frontier’s original cash-and-stock bid.
It comes after JetBlue Airways repeatedly upped its own offer to buy Spirit outright.
Spirit shareholders are set to vote on the Frontier deal at a shareholder meeting Thursday.
Frontier’s sweetened offer also increases a proposed reverse break-up fee to $350 million, from $250 million previously, in the event the deal doesn’t get approved by regulators.
That matches the reverse break-up fee JetBlue has offered. Frontier’s new offer includes a pre-payable amount of $2.22 to Spirit shareholders.