Spirit Airways has postponed a particular assembly initially scheduled for June 10 by which stockholders had been to vote on a proposed merger settlement with Frontier Airways, the provider introduced Wednesday. The assembly now will happen June 30.

The delay comes two days after JetBlue submitted a second revised takeover proposal for the low-cost provider and permits the Spirit board of administrators to “proceed discussions with Spirit stockholders, Frontier and JetBlue,” in line with Spirit.

“We welcome this growth as a crucial first step towards real negotiations between the Spirit Board and JetBlue,” stated JetBlue CEO Robin Hayes in a press release. “Spirit shareholders are clearly urging the Spirit Board to have interaction with us constructively and supply us with the identical data beforehand made obtainable to Frontier in order that we are able to attain a consensual transaction.”

Spirit “stays sure” by the phrases of the merger settlement with Frontier, and the provider’s board has not decided that JetBlue’s unsolicited tender provide or its up to date proposal represent a “superior proposal,” as outlined within the merger settlement with Frontier, in line with Spirit.

Frontier announced its bid on Feb. 7 to buy Spirit for $2.9 billion in money and inventory. JetBlue made a competing bid on April 5 for $3.6 billion in money. Spirit’s board rejected the JetBlue offer on Might 2, however JetBlue launched a hostile takeover bid on May 16 with a revised proposal and filed a proxy assertion with the U.S. Securities and Alternate Fee that urged Spirit shareholders to vote towards the Frontier merger provide on the June 10 assembly.

One of many key sticking factors for Spirit is JetBlue’s partnership with American Airways, dubbed the Northeast Alliance, and the provider’s perception that the U.S. Division of Justice’s antitrust suit towards the partnership might outcome within the merger failing to obtain regulatory approval. 

RELATED: JetBlue Offers Second Revised Takeover Proposal


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