Business

Spirit Airlines shareholders’ meeting postponed Frontier to resume JetBlue deal talks

JetBlue Airlines took off near Spirit Airlines at Fort Lauderdale-Hollywood International Airport on May 16, 2022 in Fort Lauderdale, Florida.

Joe Raedle | Getty Images

Spirit Airlines has postponed a shareholder meeting until June 30, scheduled for Friday, to continue negotiations with Frontier Airlines and JetBlue Airways and shareholders, the carrier said Wednesday.

Spirit’s announcement came two days after JetBlue sweetened its offer for the discount company, which has had a merger agreement with frontier budget company Frontier since February.

Frontier and JetBlue both say they see Spirit Airlines as a key to future growth. The two combinations would make it the fifth largest airline in the United States

Spirit has repeatedly rejected JetBlu’s offers and said a purchase would hardly pass with regulators, and JetBlue has argued that the two agreements would be examined by the Justice Department. JetBlue previously offered to dispose of Spirit’s assets in New York and some in Florida to make the deal more pleasant for regulators.

JetBlue on Monday raised its bid for a $ 350 million reverse breach if the Justice Department blocked Spirit’s purchase. Fronter offered a $ 250 million breakout fee last week if the deal is rescinded.

Spirit shareholders were due to vote on the cash and stock frontier deal on Friday. JetBlu asked Spirit shareholders to cancel the merger.

The glass Lewis proxy consulting firm last week advised shareholders to vote in favor of the Frontier deal, and another company, the ISS, said it should reject it.

Spirit shares fell 1% in pre-market trading on Wednesday, while those of JetBlue rose slightly and those of Frontier did not change.

JetBlue and Frontier did not immediately return a comment request.

Spirit Airlines shareholders’ meeting postponed Frontier to resume JetBlue deal talks

Source link Spirit Airlines shareholders’ meeting postponed Frontier to resume JetBlue deal talks

Back to top button