Shares of JetBlue Airways jumped Tuesday aft activistic investor Carl Icahn bought a astir 10% liking successful nan carrier.
The billionaire down Icahn Enterprises owns 33.62 cardinal shares, which is balanced to a 9.91% stake, according to a filing pinch nan Securities and Exchange Commission that besides noted Icahn believes nan shares are "undervalued and represented an charismatic finance opportunity."
JetBlue's banal is connected gait to scope its highest adjacent since August 2023 erstwhile it closed astatine $6.90, according to Dow Jones Market Data Group. However, shares are down astir 30% complete nan past 12 months.
JUDGE BLOCKS $3.8B JETBLUE-SPIRIT MERGER, CITES 'ANTICOMPETITIVE HARM'
JetBlue, successful a connection to FOX Business, said:
"We are ever unfastened to constructive speech pinch our investors arsenic we proceed to execute our scheme to heighten worth for each of our shareholders and stakeholders."
Inquiries to Icahn by FOX Business were not instantly returned.
The headwinds for nan shares are tied to nan carrier's grounded effort to merge pinch discount rival Spirit.
SPIRIT AIRLINES EXPLORES RESTRUCTURING OPTIONS FOLLOWING JETBLUE DEAL COLLAPSE
Last month, a national judge blocked JetBlue Airways’ projected $3.8 cardinal acquisition of nan fund bearer aft agreeing pinch nan Justice Department that nan woody would wounded nan readiness of low-cost aerial recreation tickets.
U.S. District Judge William Young wrote that nan projected merger betwixt JetBlue and Spirit "does unit to nan halfway rule of antitrust law: to protect nan United States’ markets – and its marketplace participants – from anticompetitive harm."
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Days later, JetBlue and Spirit revenge a announcement of entreaty pinch nan First U.S. Circuit Court of Appeals to effort and reverse nan decision.
JetBlue's lawyers based on nan lawsuit was a "misguided" situation to a merger betwixt nan sixth- and seventh-largest airlines successful nan U.S. that power little than 8% of nan home marketplace combined.
Spirit Airlines is looking astatine ways to reside its financial challenges aft nan woody was blocked, sources acquainted pinch nan matter told nan Wall Street Journal.
FOX Business' Eric Revell contributed to this report.