Shares of JetBlue Airways Corp. rose sharply after hours on Monday after billionaire activist investor Carl Icahn reported a 9.91% stake in the air carrier — saying its stock was “undervalued and represented an attractive investment opportunity.”
That disclosure, made in a regulatory filing on Monday, said that Icahn plans to continue discussions with JetBlue’s management over possible board representation.
jumped 16.5% in after-hours trading on Monday. The stock is down 28.9% over the past 12 months.
The move by Icahn comes after a federal judge last month blocked JetBlue’s proposed merger with Spirit Airlines Inc.
potentially leaving the carrier with limited options for future growth. The airlines are appealing that decision.