Business

Frontier sweetly proposes Spirit merger when shareholder vote comes out

A Frontier Airlines plane nears a Spirit Airlines plane at Fort Lauderdale-Hollywood International Airport on May 16, 2022 in Fort Lauderdale, Florida.

Joe Raedle | beautiful pictures

Frontier Airlines sweetened the offer to combine with other budget service provider Moraleless than a week before Spirit shareholders are due to vote on the deal.

The new offer at $4.13 per share, $2 per share above Frontier’s original stock and cash bid, comes after JetBlue Airways repeatedly made offers to buy Spirit entirely by himself in an all-cash transaction.

The battle for the Miramar, Florida-based Spirit has heated up in recent weeks. JetBlue has argued that its deal will help it better compete with major airlines and expand rapidly at a time when new planes and pilots are in short supply.

JetBlue will take over Spirit, while the Frontier-Spirit combination will create a discount airline. Both deals will create the country’s fifth-largest airline.

Spirit shareholders will vote on the Frontier deal on Thursday.

Spirit CEO Ted Christie told CNBC that the airline’s board has evaluated JetBlue’s latest offer and remains skeptical that regulators will approve the deal. The board still considers binding Frontier “a high-profile transaction,” he said.

“We will be reviewing and evaluating more thoroughly the revised terms of the Frontier-Spirit merger agreement and we plan to continue our ‘vote no’ campaign against the inferior Frontier transaction at our special meeting. special,” JetBlue said in a statement Friday.

The new offer, announced late Friday, also increases the proposed reverse breakup fee from $100 million to $350 million, in the event the deal is not approved by regulators. . That’s in line with the opposite parting fee JetBlue has offered. Frontier’s new offer includes an upfront payment of $2.22 to Spirit shareholders.

Christie said the board remains concerned about JetBlue’s regulation of JetBlue’s Northeast Alliance with American Airlines, which allows carriers to coordinate flights and book passengers on each other’s planes. The Justice Department last year sued to cancel that partnership.

Shares of all three airlines were little changed in after-hours trading on Friday.

Source link

news7h

News7h: Update the world's latest breaking news online of the day, breaking news, politics, society today, international mainstream news .Updated news 24/7: Entertainment, Sports...at the World everyday world. Hot news, images, video clips that are updated quickly and reliably

Related Articles

Back to top button