A JetBlue Airlines plane takes off near Spirit Airlines planes at Fort Lauderdale-Hollywood International Airport on May 16, 2022 in Fort Lauderdale, Florida.
Joe Raedle | Getty Images
Spirit Airlines has postponed its shareholders’ meeting, previously scheduled for Friday, to June 30, so it can continue talks with Frontier Airlines and JetBlue Airways, and its shareholders, the company said Wednesday.
Spirit’s announcement came two days after JetBlue sweetened its bid for the discount airline, which has a merger deal with budget company Frontier since February.
Frontier and JetBlue say they see Spirit Airlines as the key to their future growth. Both combinations will create the fifth largest airline in the US
Spirit has repeatedly rejected JetBlue’s bids, saying an acquisition is unlikely to happen with regulators, while JetBlue has argued that both deals will face scrutiny from the Justice Department. JetBlue had previously offered to sell Spirit’s assets in New York and some in Florida to make the deal more enjoyable for regulators.
JetBlue on Monday increased its bid for a $ 350 million reverse break if the Justice Department blocked its purchase of Spirit. Frontier last week offered a $ 250 million reverse break rate if that deal is canceled.
Spirit shareholders were due to vote Friday on the Frontier cash and stock deal. JetBlue urged Spirit shareholders to reject the merger.
Proxy advisory firm Glass Lewis last week recommended that shareholders vote in favor of the Frontier deal while another company, ISS, said they should reject it.
Shares of alcohol fell 1% in pre-market trading on Wednesday, while those of JetBlue rose slightly and those of Frontier did not change.
JetBlue and Frontier did not immediately return the request for comment.