Spirit Airlines Says It Is Now Engaging JetBlue, Still Working with Frontierby Daniel McCarthy /
In an update to shareholders on Tuesday, Spirit Airlines said that it is now engaging in discussions with JetBlue Airways while it continues to work with Frontier Group on the previous agreed-to deal.
"Consistent with its fiduciary duties, Spirit's Board of Directors is engaging in discussions with JetBlue with respect to the proposal received on June 6, 2022, and is also continuing to work with Frontier under the terms of the existing merger agreement between Spirit and Frontier,” Ted Christie, Spirit president and CEO said Tuesday.
“As part of this process, Frontier and JetBlue are being given access to the same due diligence information, on the same terms. The Board expects to bring the process to a conclusion and provide an update to stockholders ahead of the Special Meeting of Spirit Stockholders scheduled for Thursday, June 30, 2022."
Spirit expects to update its shareholders ahead of the special meeting on Thursday, June 30, 2022. The vote during that shareholder meeting will determine the future of Spirit.
Spirit’s Board of Directors has long affirmed that it preferred the Frontier deal, largely because of expected regulatory issues that could happen with JetBlue—Spirit on Tuesday also said it is “providing information requested by the US Department of Justice and Federal Trade Commission for both proposed transactions as part of the ongoing regulatory review process.”
JetBlue most recently sweetened that deal, adding a $350 million reverse break-up fee, an increase of $150 million compared to its previous offer, and an increase of $100 million compared to Frontier’s offer. It also included a prepayment of $1.50 per share of that reverse breakup fee, which, when added to the previous $30 per share offer, made the deal worth an aggregate of $31.50.