Spirit Airlines delays shareholders meeting as bidding war continues

Airlines spirit_airlines_planes-1.jpg

Spirit Airlines (S64) (SAVE) has postponed its ‘Special Meeting of Stockholders’ regarding a proposed merger with Frontier Group. 

In a statement issued on June 29, 2022, just one day before the shareholder meeting was scheduled to take place, Spirit announced that the meeting would be postponed until July 8 in order to allow the company’s board to continue discussions with both Frontier and JetBlue Airways.  

“All stockholders of record as of the close of business on May 6, 2022, are entitled to vote at the Special Meeting. Spirit stockholders who have not already voted, or wish to change their vote, are strongly encouraged to submit their proxies as soon as possible,” Spirit Airlines (S64) (SAVE) said in the statement.  

“Valid proxies submitted by stockholders prior to the adjourned Special Meeting will continue to be valid for purposes of the reconvened Special Meeting,” the carrier continued.  

The meeting has been rescheduled multiple times. It had initially been slated to take place on May 10, 2022, but was moved to June 10, and then delayed until June 30.  

Talks about Spirit’s potential merger with Frontier Group began in February 2022. However, in April 2022, JetBlue Airways, another major American low-cost carrier, expressed an interested in buying Spirit, submitting a $3.6 billion cash takeover bid.  

Spirit waived JetBlue’s (JBLU) initial proposal. However, the New York-based airline has showed no sign of backing down, continuing to submit several improved proposals and entering into a bidding war with rival, Frontier.