After receiving a third and “enhanced” offer from the New York airline, Spirit announced they will delay the special shareholder meeting intended to approve the Frontier Airlines merger until June 30, 2022.
Postponement Allows Executives to “Continue Discussions” With Everyone
Since Frontier and Spirit announced their plans to create the nation’s largest ultra-low-cost-carrier with international access, JetBlue has worked to convince the company they would be better suited joining their airline instead. After being rebuked by Spirit’s board and executives twice, JetBlue submitted a third “enhanced superior proposal” on June 6, 2022. The new proposal adds additional cash upfront as part of a reverse breakup fee if their merger is not approved by federal regulators.
After receiving the proposal from JetBlue, Spirit decided to postpone the previously scheduled special meeting intended to approve the Frontier merger until June 30, 2022. The company says it will give all parties more time to discuss all the options on the table.
“The Special Meeting was postponed to allow the Spirit Board of Directors to continue discussions with Spirit stockholders, Frontier and JetBlue Airways Corporation,” the Spirit statement reads. “Spirit remains bound by the terms of the merger agreement with Frontier, and Spirit’s Board has not determined that either JetBlue’s unsolicited tender offer or its updated proposal received on June 6 constitutes a Superior Proposal as defined in the merger agreement with Frontier and has made no change to its recommendation that Spirit stockholders adopt the merger agreement with Frontier.”
JetBlue is already claiming victory in pushing back the special meeting. In a statement, JetBlue chief executive Robin Hayes said their offer has “the most compelling value available for Spirit stockholders,” with the goal of creating national competition for the legacy airlines.
“We welcome this development as a necessary first step toward genuine negotiations between the Spirit Board and JetBlue,” Hayes said in a statement. “Spirit shareholders are clearly urging the Spirit Board to engage with us constructively and provide us with the same information previously made available to Frontier so that we can reach a consensual transaction.”
Frontier has not publicly commented on any of the recent developments.
Source: frugal travel guy