Spirit Airlines Delays Shareholder Vote on Frontier Deal

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Jun 8. Spirit Airlines Inc (SAVE.N) said on Wednesday it had postponed a shareholder vote on its sale to Frontier Group Holdings Inc (ULCC.O) to June 30 from June 10 after JetBlue Airways Corp (JBLU.O) sweetened a rival offer for the budget carrier.

Spirit assessed it did not have enough shareholder support in favor of the deal with Frontier, even after the latter enhanced it last week by adding a $250 million regulatory break-up fee, according to people familiar with the matter.

Spirit reiterated on Wednesday that it had not changed its recommendation to shareholders to back the Frontier deal.

The company received an improved offer from JetBlue on Monday that included an increased $350 million break-up fee which would be payable to Spirit if antitrust reasons stopped the deal.

Either of the two deals for Spirit would create the fifth-largest U.S. airline. U.S. carriers have been trying to expand their domestic footprint while being dogged by labor and aircraft shortages.

Source: Reuters

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127610cookie-checkSpirit Airlines Delays Shareholder Vote on Frontier Deal