Spirit Airlines Postpones Vote on Frontier Deal

Thursday, June 09, 2022 at 03:15 PM ET

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On Feb. 7, Spirit entered into a merger agreement with Frontier, under which Spirit and Frontier would combine in a deal for stock and cash. [File photo: Shutterstock]

Key Takeaways:

Spirit Airlines has postponed its shareholder meeting until June 30 to allow its board to evaluate competing merger offers from JetBlue and Frontier.
Spirit's board is assessing JetBlue's sweetened bid, which now includes a larger regulatory break-up fee, despite Spirit's previous warnings about its significant antitrust risks.
Spirit had initially favored Frontier's offer, advising shareholders to reject JetBlue's bid, and believing a merger of two ultra-low-cost carriers would be more beneficial and likely to close.

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Spirit Airlines has decided to postpone its scheduled shareholder meeting to Thursday, June 30 to give itself time to discuss whether to merge with JetBlue or Frontier. Spirit shareholders were set to vote on Frontier’s offer at the shareholder meeting on Friday.

In a statement announcing the delayed vote, Spirit said it remained bound by the terms and agreement of the merger agreement with Frontier and that its board was working through JetBlue’s “unsolicited offer” to determine whether or not it was actually “superior” as JetBlue claims.