The Frontier Airlines-Spirit Airlines merger vote has been pushed back to June 30th while the Spirit board evaluates updated offers including one from JetBlue. I reached out for some clarity and here’s what I found.
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Spirit Press Release Addresses New Consideration
Spirit Airlines has been in the midst of an interesting negotiation for its future. The board has rejected JetBlue’s initial advances but in the week prior to a vote for shareholders to support or reject a proposal to merge with Frontier, the board received revisions to offers from JetBlue and Frontier. Each seemed to simply increase the break-up fee should regulators block the transaction, Frontier moved from $200 million to $250 million, JetBlue to $350 million with some of that paid to shareholders right away.
In the press release this week, Spirit clarified that not only was it evaluating the offers, it had given equal due diligence to both parties in accordance with their fiduciary responsibilities. This announcement seemed to represent a sea-change from the Spirit board of directors that they may be reconsidering the JetBlue offer.
However, shareholders received new proxy voting deadlines (6/29/2022) to vote on the same prior motion – to either approve or deny the Frontier merger. Neither a JetBlue acquisition nor a model that allows Spirit to remain independent was present in that pushed…