JetBlue Airways stock outperforms US markets, soars over 11% after Carl Icahn takes stake in airline
Outperforming the US stock markets on Tuesday, shares of JetBlue Airways Corp. soared more than 11 per cent after activist investor Carl Icahn, 87, took 9.91 per cent stake in the airline.
In a regulatory filing, Icahn said he purchased the shares in January and February.
He also said that JetBlue’s stock is undervalued and represents an attractive investment opportunity.
The activist investor has had talks, and plans to continue talking with JetBlue Airways in regards to possible representation on its board of directors.
“We are always open to constructive dialogue with our investors as we continue to execute our plan to enhance value for all of our shareholders and stakeholders,” New York-based JetBlue said in a statement.
In January, the airline was dealt a blow when a federal judge sided with the Biden administration and blocked JetBlue Airways from buying Spirit Airlines.
The federal judge had said that the $3.8 billion deal would reduce competition.
Both airlines have filed their intention to appeal with a higher court. A hearing date has been fixed in June.
JetBlue, the nation’s sixth largest airline by revenue, had argued that it needed the deal to expand quickly and compete against bigger rivals that dominate the United States air travel market.
After the court ruling, JetBlue Airways told Spirit Airlines that it may terminate the deal.
Over the past 12 months, JetBlue’s shares have dropped 30 per cent.
US stocks sank on Tuesday after the worse-than-expected inflation data dampened hopes of interest rates cut in May.
At 11:24 a.m. ET, the Dow Jones Industrial Average was down 405.89 points, or 1.05 per cent, at 38,391.49, the S&P 500 was down 52.30 points, or 1.04 per cent, at 4,969.54, and the Nasdaq Composite was down 189.84 points, or 1.19 per cent, at 15,752.71.
A Labor Department report showed US consumer prices rose more than expected in January amid rise in the costs of shelter and healthcare.
Here’s your comprehensive 3-minute summary of all the things Finance Minister Nirmala Sitharaman said in her Budget speech: Click to download!
Download Finplay News App to get Daily Market Updates.
More
Less
Published: 13 Feb 2024, 11:14 PM IST
Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.