JetBlue shares jump after Carl Icahn declares a near-10% stake in the airline
(Reuters) — Activist investor Carl Icahn on Monday reported a 9.91% stake in Jetblue Airways Corp, according to a filing.
Shares of JetBlue were up more than 14% in premarket trading on Tuesday.
Icahn acquired the airline's shares in the belief that they were undervalued and represented an attractive investment opportunity, the filing said.
The activist investor intends to have discussions with members of the management and board of directors regarding the possibility of board representation.
A U.S. judge in January blocked JetBlue's planned merger with Spirit Airlines, after finding that the proposed deal could threaten competition in the U.S. aviation market and harm ticket prices.
An appeals court said earlier in February it would hear arguments in a bid by JetBlue Airways and Spirit Airlines to overturn the ruling that blocked their $3.8 billion merger, an expedited schedule that was nonetheless slower than what the companies wanted.
(Reporting by Kannaki Deka in Bengaluru; Editing by Anil D'Silva)