Frontier Issues Open Letter to Spirit Shareholders Ahead of Vote

The Denver-based carrier is trying to sway Spirit decision makers to merge with it instead of JetBlue.

Michael Wildes

Monday, June 27, 2022 at 04:09 PM ET

Verified

Frontier and Spirit announced plans to merge in February. [Courtesy: Frontier Airlines]

Key Takeaways:

Frontier has sweetened its merger offer for Spirit Airlines and issued an open letter to Spirit shareholders, urging them to choose its proposal over JetBlue's competing bid.
Frontier argues its merger with Spirit is strategically sound, offers greater value to shareholders, and has a significantly higher chance of regulatory approval compared to JetBlue's "illusory proposal."
Frontier highlights JetBlue's existing antitrust scrutiny, calling its offer a "dead end," and points to recommendations from leading proxy firms (ISS and Glass Lewis) in favor of the Frontier-Spirit combination.
Spirit shareholders are set to vote on the merger decision this Thursday, with the outcome determining if a combined Frontier-Spirit would become the fifth-largest national carrier.

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After sweetening its offer last Friday to merge with Spirit Airlines (NYSE: SAVE), Frontier (NASDAQ: ULCC) issued an open letter to Spirit’s shareholders to finalize its case for why they should choose Frontier over JetBlue (NASDAQ: JBLU).

Frontier and Spirit announced plans to merge in February before JetBlue decided it wanted Spirit for itself. This has caused much back and forth, particularly between Spirit and JetBlue. Spirit described JetBlue’s offer as “unsolicited” and argued that it wasn’t likely that a deal between them would close due to possible antitrust scrutiny.