Spirit Airlines (S64) (SAVE) has once again rescheduled a shareholder vote on its proposed merger with US ultra-low-cost carrier Frontier so it can continue talks with both of its suitors.
The special meeting of stockholders over the proposed $2.4 billion-worth merger deal with Frontier was due to take place on July 8, 2022. According to an official statement released by Spirit Airlines (S64) (SAVE) on July 7, 2022, the event is now further delayed until July 15, 2022, in order to provide an extra week for Spirit to continue discussions with both Frontier and JetBlue Airways.
Spirit said in the statement that it intended to “reopen and immediately adjourn” the special meeting to “to allow the Spirit Board of Directors to continue discussions with Frontier and JetBlue Airways”.
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, then delayed until June 30, and then postponed until July 8 due to the ongoing bidding war over the ultra low-cost carrier.
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 interest in buying Spirit, submitting a $3.6 billion cash takeover bid.
Spirit rejected JetBlue’s (JBLU) initial proposal. However, the New York-based airline has shown no sign of backing down, continuing to submit several improved proposals and entering a bidding war with the rival, Frontier.
In a JBLU</a>)-Comments-on-Spirit%E2%80%99s-Adjournment-of-Special-Meeting”>statement in response to the adjourned meeting, JetBlue (JBLU) said it continued to recommend that Spirit shareholders vote against the planned transaction between Spirit and Frontier.
“We are encouraged by our discussions with Spirit and are hopeful they now recognize that Spirit shareholders have indicated their clear, overwhelming preference for an agreement with JetBlue (JBLU),” the airline said.