Spirit delays vote on Frontier merger — once more

We’ll have to attend longer to be told the destiny of Spirit Airways.

The Miramar, Florida-based ultra-low-cost provider overdue Wednesday introduced {that a} shareholder vote on its proposed merger with Frontier Airways will likely be behind schedule till July 8 — simply hours sooner than the assembly was once to start out.

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It’s the second one extend for the particular shareholder assembly the place the vote was once to happen, which was once firstly scheduled for June 10. Technically, Thursday’s assembly will nonetheless happen, regardless that it’ll be straight away adjourned. Spirit will proceed to simply accept proxy votes from its shareholders after the adjournment.

No particular reason why for the extend was once given, apart from to permit for proceeding discussions with Frontier and JetBlue and to solicit extra proxy votes.

Extra: JetBlue vs Frontier: Who will win the struggle over Spirit and why does it subject?

Spirit faces a opposed takeover bid from JetBlue, which simply this week made its 5th be offering to buy the airline at $33.50 in line with percentage — or about $3.7 billion. That transfer got here after Frontier overdue remaining week sweetened its merger proposal for Spirit. Spirit’s control and board have unwaveringly supported the proposed tie-up with Frontier because it was once introduced in February.

Extra: ‘We now have numerous momentum’: Frontier’s CEO tells TPG he’s assured forward of Spirit merger vote

Must shareholders vote in prefer of the Frontier merger on July 8, each corporations would paintings in combination towards successful regulatory approval and shutting the transaction, which they hope to do through the top of the yr. There could be extra uncertainty concerning the subsequent steps will have to shareholders vote towards the merger. That transfer would no longer be an particular endorsement of JetBlue’s proposal — it could simply be a vote towards the Frontier merger.

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Each proposals face regulatory uncertainty, with analysts believing that the Frontier merger would much more likely be licensed through the Justice Division’s antitrust department than the JetBlue acquisition be offering. JetBlue has introduced to divest belongings within the Northeast, the place it recently cooperates in a strategic partnership with American Airways. Each proposals include opposite break-up charges payable to Spirit within the match regulators block the deal.

Featured picture through Zach Griff/The Issues Man.