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Spirit Airlines (NYSE: SAVE) shareholder Discovery Capital sent a letter to the former’s board of directors, requesting them to abandon the merger with Frontier Group Holdings Inc (NASDAQ: ULCC) in favor of a bid from JetBlue Airways Corp (NASDAQ: JBLU).
Discovery owns 1.4% of Spirit. Discovery is backing a Spirit merger with JetBlue, while Spirit intends to merge with Frontier.
"We echo the opinion of Institutional Shareholder Services (ISS) that the JetBlue proposal is more favorable, and we implore SAVE management to abandon the Frontier Merger without delay," Discovery said in a statement.
The Spirit shareholder vote has been delayed twice to allow more talks with Frontier and JetBlue to broker a deal.
Last month, ISS said that JetBlue's latest offer to buy Spirit was "more favorable" for the ultra-low-cost airline's shareholders, but maintained its support for the Frontier deal.
Source -Discovery Capital Management
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