Spirit Airlines plans June vote on Frontier’s merger offer

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Spirit Airlines shareholders will vote next month on whether to accept a buyout offer from Frontier Airlines

11 May 2022, 21:03

1 min read

Spirit Airlines shareholders are scheduled to vote June 10 on a $2.9 billion buyout offer from Frontier Airlines.

Shareholders will be voting, in effect, whether to take Frontier’s bid and reject a higher offer from JetBlue Airways.

The special meeting was detailed in a regulatory filings by Spirit and Frontier. JetBlue did not immediately comment on Wednesday.

Spirit’s board supports the Frontier deal because of uncertainty about JetBlue’s ability to win approval of its $3.6 billion offer from antitrust regulators.

Spirit shareholders would get more cash from the JetBlue offer. However, Frontier’s proposal would give Spirit shareholders 48.5% of shares in a combined airline, meaning they could come out ahead if the new company’s stock rises in value.

JetBlue would eliminate Spirit as a so-called ultra-low-cost airline, while Frontier would not. Also, the U.S. Justice Department and several states are already suing to block a JetBlue regional partnership with American Airlines on grounds that it reduces competition.


ABC News


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