Spirit Airlines ( NYSE: SAVE ) is again moving the vote on a merger with Frontier Air Group ( ULCC ) after the board’s proposed suitor declined to sweeten its offer.
In a press release on Wednesday, the carrier indicated that the meeting to discuss the merger agreement with move to July 27. The meeting had previously been delayed from June 10 to June 30 after an offer from JetBlue Airways ( JBLU ). It was then moved again to July 8 amid a spate of sweetened bids from both bidders and then once more to July 15.
Despite the consistent delays, management indicated its continued support for the merger with Frontier Air ( ULCC ).
“The Spirit Board of Directors reiterates its commitment to the Frontier transaction and strongly recommends stockholders vote FOR the merger on the WHITE proxy card today,” a press release stated.
However, shortly before the vote, major shareholders have taken to backing JetBlue. Just a day prior to the latest delay, Discovery Capital Management advised the airline to abandon its support for the Frontier merger and instead more seriously consider the JetBlue offer.
“We echo the opinion of ISS that the JetBlue proposal is more favorable, and we implore SAVE management to abandon the Frontier Merger without delay,” a letter to management on Tuesday read.
The firm holds 200K shares, per its letter.
Read more on other major shareholders backing JetBlue .
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Spirit Airlines moves to delay merger vote yet again as major shareholders back JetBlue