This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Germans Show Green to JetBlue

Updated from 4:25 p.m. EST

Germany's Lufthansa has agreed to buy 19% of JetBlue (JBLU), signaling a vote of confidence in an innovative, comfort-focused carrier with a lagging share price and marking the latest foray into a U.S. company by a foreign investor.

The carriers said Lufthansa will spend approximately $300 million to buy 42 million shares of JetBlue at $7.27 each. JetBlue's stock rose 14% Thursday to $7.15. It had closed Wednesday at $6.25, just 10 cents above the 52-week low.

The agreement, which is subject to regulatory review, is scheduled to close in the first quarter. At that time, a Lufthansa nominee would join the JetBlue board.

Lufthansa approached JetBlue around the close of summer or early fall, said JetBlue CEO Dave Barger, on a conference call with analysts. "We look at Lufthansa as a really smart investor," he said. "What a huge affirmation statement that is, regarding their interest in JetBlue."

The transaction is strictly a financial one for now, he said, but "as the largest domestic airline at [New York's Kennedy International], JetBlue has continued to express an interest in exploring international alliances. We would consider exploring potential opportunities with Lufthansa or others at some point down the road."

At Kennedy, Lufthansa operates three flights a day, two serving Frankfurt and one to Munich, while JetBlue has a hub with 48 destinations. In all, Lufthansa flies to 17 U.S. cities and plans to add Seattle in the spring.

In a prepared statement, Lufthansa CEO Wolfgang Mayrhuber said: "Our investment reflects the confidence we have in JetBlue's quality, growth potential and management team. [It] presents Lufthansa with a compelling opportunity to invest in the U.S. point-to-point carrier market as the industry continues to evolve."

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,919.59 +80.85 0.48%
S&P 500 1,981.60 +9.86 0.50%
NASDAQ 4,527.5140 +19.2020 0.43%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs