Spirit Delays Frontier Merger Vote a Fourth Time

Spirit Airways for a fourth time has postponed a shareholder vote on its settlement to merge with Frontier Airways, the corporate introduced Wednesday. The particular assembly, now scheduled for July 27, most recentlyhad been set for July 15. 

Frontier is in a bidding battle with JetBlue to accumulate Spirit.

The transfer comes after Frontier CEO Barry Biffle despatched a letter dated July 10 to Spirit CEO Ted Christie noting that “we nonetheless stay very removed from acquiring approval from Spirit stockholders primarily based on the proxy knowledge we obtained as of July 8,” and requesting that the low-cost provider as soon as extra postpone the particular stockholder assembly to the brand new date, “to be able to allow further time to solicit further voting proxies in favor of the transaction” if Spirit had not obtained a enough variety of shares approving the proposed merger with Frontier by July 15. 

Additional, the letter famous that Frontier didn’t intend to up the ante for the provider after JetBlue had increased its bid yet again, and that and “Spirit ought to think about the phrases of the Merger Settlement, as most recently amended on June 24, 2022, as representing Frontier’s final, greatest and last provide with respect to the pending merger.”

In Wednesday’s postponement announcement, Spirit’s Christie reiterated the board’s dedication to the Frontier transaction and “strongly recommends” stockholders vote for the merger.

In response to the vote postponement, JetBlue CEO Robin Hayes stated in a press release that regardless of Frontier’s provide being last and Spirit not but receiving enough approval votes, “by transferring the Particular Assembly once more, the Spirit Board is delaying the power of Spirit shareholders to obtain JetBlue’s superior phrases.”