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Spirit Airlines Shareholders’ Meeting Postpones Frontier Airlines Continued Negotiations

JetBlue Airlines planes will take off near Fort Lauderdale-Hollywood International Airport Spirit Airlines planes on May 16, 2022 in Fort Lauderdale, Florida.

Joe Ladle | Getty Images

Spirit Airlines Postponed the shareholders’ meeting previously scheduled for Friday until June 30th, Frontier Airlines When JetBlue AirlinesAnd with its shareholders, Career said Wednesday.

Wednesday’s spirit share fell by more than 2%, while Frontier fell by more than 3% and JetBlue fell by more than 4%, surpassing the wider market. Rejected..

The announcement of the spirit took place two days after JetBlue Sweetened the offer For the discount airlines I had Merger agreement Since February, we have partnered with the low-cost carrier Frontier Airlines. Spirit shareholders were scheduled to vote for cash and stock frontier transactions at a shareholders’ meeting on Friday. JetBlue urged Spirit shareholders to refuse the merger.

Both Frontier Airlines and JetBlue Airlines say they see Spirit Airlines as the key to future growth.Both combinations create the fifth largest airline in the United States

Spirit repeatedly rejected JetBlue’s offer, stating that the acquisition is unlikely to pass regulatory consultations, but JetBlue argued that both transactions faced scrutiny from the Justice Department.

JetBlue had previously offered to sell assets from some of the spirits of Newyork and Florida to make it more palatable to regulators. The company said Spirit’s Airbus purchase order and access to pilots “turbocharged” its growth to make it more competitive with major airlines.

JetBlue raised its offer to dissolve back to $ 350 million on Monday if the Justice Department blocked the purchase of Spirit.Last week’s frontier Offers $ 250 Million Reverse Split FeePay to Spirit shareholders, If the transaction is knocked down by a regulatory agency.

“This development is welcomed as a necessary first step towards true negotiations between the Spirit Board and JetBlue,” JetBlue CEO Robin Hayes said in a statement Wednesday. “Spirit shareholders are explicitly seeking to be constructively involved in the Spirit Board and provide the same information previously made available by Frontier so that they can reach consensual transactions. “

Spirit is bound by a merger deal with Frontier, and the company’s board hasn’t determined that JetBlue’s offer is better than the existing deal, Spirit CEO Ted Christie staffed Wednesday. Said in a note to. Spirit did not immediately respond to JetBlue’s allegations that Spirit’s shareholders were urging the company to partner with JetBlue.

Agent Glass Lewis last week recommended shareholders vote for the frontier deal, but another company, the ISS, said it should refuse.

“The board will continue to prioritize the best interests of team members and guests as it pursues a policy of conduct that is in the best interests of shareholders,” Spirit CEO Ted Christie said in a note to staff. increase.

Frontier declined to comment.

Spirit Airlines Shareholders’ Meeting Postpones Frontier Airlines Continued Negotiations

Source link Spirit Airlines Shareholders’ Meeting Postpones Frontier Airlines Continued Negotiations

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