Spirit postpones its Frontier merger vote for a third time as JetBlue waits in wings
Spirit's shareholder vote on its Frontier merger is facing a rolling delay.
The third delay on the meeting came late Thursday, hours before the vote was supposed to take place. The meeting, which had been postponed last week, and earlier in June, is now scheduled for next Friday.
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Spirit said it was delaying the vote “to continue discussions with Frontier and JetBlue Airways,” the two airlines that are trying to engineer a merger with Spirit. The delay could signal improving odds for JetBlue’s bid, which would offer shareholders a substantially bigger payout.
Last week, when the meeting was postponed for a second time, The Wall Street Journal reported — citing people familiar with the matter — that it was looking difficult for the Frontier deal to be approved by Spirit's shareholders.
The merger with Frontier has had the unwavering support of Spirit's board since it was announced in February. JetBlue came to the table with its offer in March. While that bid is still viewed as a hostile takeover that would spoil the Frontier deal, Spirit said Thursday that its board was in talks with JetBlue's management, in addition to Frontier.
JetBlue is offering $33.50 per share in its takeover bid, which values the company at around $3.7 billion, significantly more money than Frontier's merger proposal.
More: JetBlue vs. Frontier: Who will win the battle over Spirit and why does it matter?
JetBlue is "encouraged" by its discussions with Spirit, CEO Robin Hayes said.
"We are encouraged by our discussions with Spirit and are hopeful they now recognize that Spirit shareholders have indicated their clear, overwhelming preference for an agreement with JetBlue," Hayes said in a statement.
Should shareholders vote in favor of the Frontier merger on July 15, both companies would work together toward winning regulatory approval and closing the transaction, which they hope to do by the end of the year. There would be more uncertainty about the next steps should shareholders vote against the merger. That move would not be an explicit endorsement of JetBlue’s proposal — it would just be a vote against the Frontier merger.
Both proposals face regulatory uncertainty, with analysts believing that the Frontier merger would more likely be approved by the Department of Justice’s antitrust division than the JetBlue acquisition offer. JetBlue has offered to divest assets in the Northeast, where it currently cooperates in a strategic partnership with American Airlines. Both proposals come with reverse breakup fees payable to Spirit in the event regulators block the deal.
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- Earn bonus Medallion® Qualification Miles (MQMs) and an Medallion Qualifying Dollar (MQD) waiver when you hit specific spending thresholds with your card within a calendar year
- Receive a Domestic Main Cabin round-trip companion certificate each year
- Statement credit for TSA PreCheck/Global Entry fee (up to $100)
- First checked bag free
Cons
- Doesn't make sense if you don't fly Delta
- SkyMiles aren't the most valuable airline currency
- Earn 90,000 bonus miles after you spend $4,000 in purchases on your new Card in your first 6 months.
- Receive a Domestic Main Cabin round-trip companion certificate each year upon renewal of your Card. Payment of the government imposed taxes and fees of no more than $80 for roundtrip domestic flights (for itineraries with up to four flight segments) is required. Baggage charges and other restrictions apply. See terms and conditions for details.
- Enjoy your first checked bag free on Delta flights. Plus enjoy Main Cabin 1 Priority Boarding and settle into your seat sooner.
- New: Card Members get 15% off when using miles to book Award Travel on Delta flights through delta.com and the Fly Delta app. Discount not applicable to partner-operated flights or to taxes and fees.
- Earn 3X Miles on Delta purchases and purchases made directly with hotels.
- Earn 2X Miles at restaurants worldwide including takeout and delivery in the U.S., and at U.S. supermarkets.
- Earn 1X Mile on all other eligible purchases.
- Enjoy a per-visit rate of $50 per person for Card Members and up to two guests to enter the Delta Sky Club when traveling on a Delta flight.
- Fee Credit for Global Entry or TSA PreCheck® after you apply through any Authorized Enrollment Provider. If approved for Global Entry, at no additional charge, you will receive access to TSA PreCheck.
- Earn up to 20,000 Medallion® Qualification Miles (MQMs) with Status Boost® per year. After you spend $25,000 in purchases on your Card in a calendar year, you can earn 10,000 MQMs up to two times per year, getting you closer to Medallion® Status. MQMs are used to determine Medallion® Status and are different than miles you earn toward flights.
- No Foreign Transaction Fees.
- $250 Annual Fee.
- Terms Apply.
- See Rates & Fees