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 postponed its shareholder meeting until June 30 to consider a sweetened merger offer from JetBlue, delaying a vote on its existing agreement with Frontier.
Spirit's board is evaluating JetBlue's "unsolicited offer" for superiority, despite previously warning that JetBlue's proposal faces significant antitrust scrutiny and potential closure difficulties.
JetBlue enhanced its offer by committing an additional $150 million to Spirit shareholders if the deal fails due to regulatory reasons, surpassing Frontier's similar commitment.
The decision on whether to merge with JetBlue or Frontier will create the fifth-largest airline in the U.S.

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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.