JetBlue Airways Corp. upped its proposal to buy Spirit Airlines Inc. again, trying to outdo Frontier Group Holdings Inc. , which sweetened its own offer for the ultra low-cost airline late Friday. JetBlue raised the fee it would have to pay Spirit if the deal wouldn't clear antitrust to $400 million, from $350 million, and its prepayment offer to $2.50 a share, payable as a cash dividend to Spirit shareholders "promptly following" a shareholder vote approving a merger with JetBlue. JetBue also added a "ticking fee," which would provide Spirit shareholders with a monthly prepayment of 10 cents a share between January 2023 and the closing or termination of the deal, expected to bring close scrutiny from antitrust regulators. JetBlue called its newest offer a "decisively superior proposal," and urged Spirit shareholders to vote against Frontier's offer. Frontier's offer recently got the recommendation from proxy adviser ISS, which was a change from ISS's previous recommendation, and has secured a recommendation from advisers at Glass Lewis. Spirit shares rose more than 2% in the extended session, after ending the regular trading day down 8%, while shares of Frontier rose 1% after an 11% loss during the regular session. JetBlue shares ticked 0.6% higher in after hours after rising 1.6% in the trading day. Spirit shareholders are scheduled to vote on Thursday.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
Ceragon Networks Ltd. CRNT shares surged in the extended session Monday after Aviat Networks Inc. AVNW offered to acquire the wireless telecom equipment company and shake up its board. Ceragon shares rallied more than 20% after hours, following a 5.4% decline to close the regular session at $2.09, for a market cap of $176 million. Aviat, which owns more than 5% of shares already, offered $2.80 a share in cash for the shares of Ceragon it does not already own. Ceragon also said it wants to increase the number of board members to nine, while removing three current directors, and appoint five board members. “Aviat believes Ceragon’s current board has overseen destruction of shareholder value and overlooked opportunities to create greater value,” the company said. Ceragon shares declined 1.5% after hours, following a 2.1% decline to close at $25.38.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
JPMorgan Chase & Co. shares rose 0.3% in aftermarket trading on Monday after the bank said it will keep its third-quarter dividend at $1 a share as it channels more capital to complete the Federal Reserve's 2022 annual stress test process. The bank's stress capital buffer (SCB) requirement is now 4%, up from the current 3.2% and its Standardized Common Equity Tier 1 capital ratio requirement including regulatory buffers is 12%, up from 11.2%. The Federal Reserve will provide the bank with its final SCB requirement by Aug. 31, effective on Oct. 1 through Sept. 30, 2023. JPMorgan said its board plans to maintain its third-quarter dividend flat "in light of higher future capital requirements," the company said. In April, JPMorgan's board authorized a new common equity share repurchase program of $30 billion, effective May 1. This program remains in place.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
Wells Fargo & Co. said late Monday it expects to increase its third quarter dividend to 30 cents a share, from 25 cents a share, subject to approval by the company's board at its July meeting. The bank also said it has "significant capacity" to buy back its shares within the next four quarters through the second quarter of 2023. The buybacks "will be routinely assessed" as the bank considers market conditions and other factors, it said. Shares of Wells Fargo were flat in the extended session Monday after ending the regular trading day down 1.3%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
Shares of Robinhood Markets Inc. closed up 14% in Monday trading after a Bloomberg News report said that FTX, the cryptocurrency exchange run by Sam Bankman-Fried, was exploring whether it may be able to purchase Robinhood. The report, which quoted multiple anonymous sources, said that FTX was "deliberating internally" how it might be able to acquire Robinhood. It also said that FTX hasn't formally approached Robinhood about a potential deal. Bankman-Fried told MarketWatch in an emailed statement that his company was "excited about Robinhood's business prospects and potential ways we could partner with them" but wasn't involved in active merger discussions with Robinhood. A spokesperson for Robinhood declined to comment. Robinhood shares were halted shortly before 3 p.m. Eastern and resumed trading just before 3:10 Eastern. The stock has lost 49% so far this year as the S&P 500 has declined 18%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.