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• Spirit has postponed its shareholder vote from July 10 to July 27
Spirit Airlines Inc (NYSE: SAVE) on Wednesday said in response to Frontier Group Holdings Inc’s (NASDAQ: ULCC) request the company is delaying the shareholder vote on its merger deal to July 27.
Last weekend, Frontier Chief Executive Barry Biffle, in a letter to Spirit, sought more time to drum up proxy support for its buyout bid.
“We still remain very far from obtaining approval from Spirit stockholders based on the proxy data we received as of July 8,” Biffle wrote.
Spirit signed a cash-and-stock merger deal with rival Frontier in February to form a new no-frills airline and compete against big national carriers.
In April, JetBlue Airways Corp (NASDAQ: JBLU) jumped into the fray with an all-cash offer.
Frontier’s cash-and-stock offer currently stands at $25.39 per share, which the company decided not to raise the bid further.
JetBlue and Frontier have been fighting to sign a deal which would expand their domestic footprints and create the fifth largest US airline.
On Tuesday, Spirit shareholder Discovery Capital Management LLC urged the low-cost carrier to abandon its merger with Frontier in favor of a bid from JetBlue.
Picture Credit: Adweek
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