![]() What is that point where it goes from a clearly inferior proposal to a reversal in favor of the JetBlue offer? How much materially better is the Frontier deal for shareholders? For example, if a shareholder is going to receive a 50% premium on today’s share price but the board recommends against this, they must have reason to believe that shareholders will make more from the Frontier deal over time. If JetBlue were to offer $4.5bn, $6bn, or $10bn, at a certain point it would have to make sense, and Spirit leadership would have to shift support. But at what point does the JetBlue offer exceed the benefits of the Frontier deal for shareholders. The Spirit board (and many analysts) have concluded that the Frontier deal is better for the long-term prospects of Spirit shareholders as the deals stand today. Response: “With the 6/30 stockholder vote regarding the merger with Frontier, Spirit stockholders are voting whether or not to accept Frontier’s offer as stipulated in the original merger agreement.” Is There A Point In Which The Board Would Recommend JetBlue over Frontier? Can you shed some light as to why just the one option is on the table for shareholders? Question: There are truly three options for Spirit: Frontier merger, JetBlue acquisition, and remaining independent. , the stockholder meeting was postponed to allow Spirit’s Board of Directors additional time to continue discussions with Spirit stockholders, Frontier and JetBlue… Spirit is in discussions with both companies and the Board will provide a recommendation to Spirit stockholders ahead of the rescheduled meeting on 6/30.” The proposed JetBlue deal is not currently subject to a stockholder vote because Spirit and JetBlue have not entered an agreement at this time.” Response: “The special meeting of Spirit’s stockholders was called to consider the merger agreement (as announced in February and amended in early June) between Spirt and Frontier. Question: Statements here today suggest that the JetBlue offer is being equally considered (equal due diligence materials.) If the JetBlue deal is being given equally considered, why is the vote solely for or against the Frontier deal? I posed a series of questions to a well-placed source at the carrier who responded on background and the condition of anonymity. Is JetBlue Being Given Equal Consideration? Neither a JetBlue acquisition nor a model that allows Spirit to remain independent was present in that pushed vote. ![]() However, shareholders received new proxy voting deadlines () to vote on the same prior motion – to either approve or deny the Frontier merger. This announcement seemed to represent a sea-change from the Spirit board of directors that they may be reconsidering the JetBlue offer. In the press release this week, Spirit clarified that not only was it evaluating the offers, it had given equal due diligence to both parties in accordance with their fiduciary responsibilities. Each seemed to simply increase the break-up fee should regulators block the transaction, Frontier moved from $200 million to $250 million, JetBlue to $350 million with some of that paid to shareholders right away. ![]() The board has rejected JetBlue’s initial advances but in the week prior to a vote for shareholders to support or reject a proposal to merge with Frontier, the board received revisions to offers from JetBlue and Frontier. Spirit Airlines has been in the midst of an interesting negotiation for its future. Spirit Press Release Addresses New Consideration If you haven’t followed us on Facebook or Instagram, add us today. If you are considering booking travel or signing up for a new credit card please click here. Both support. I reached out for some clarity and here’s what I found. The Frontier Airlines-Spirit Airlines merger vote has been pushed back to June 30th while the Spirit board evaluates updated offers including one from JetBlue. Opinions expressed here are the author's alone. The content on this page is not provided by any companies mentioned, and has not been reviewed, approved or otherwise endorsed by these entities. For our complete advertising policy, click here. We value your time and money and will not waste it. My dear readers, some links on this site pay us referral fees for sending business and sales.
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