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The drama surrounding the possible merger of the airline between Spirit Airlines and Frontier Group will last at least another week.
Spirit on Wednesday rejected shareholders’ vote on Frontier’s merger offer for the budget company until next week.
Spirit shareholders had been scheduled to finalize their vote at a special meeting Thursday.
The meeting will now take place on July 8th.
It is not the first time that voting has been delayed. A vote that was scheduled for June 10 was also delayed.
SPIRIT SHAREHOLDERS ARE ENCOURAGED TO VOTE FOR THE SWEET BORDER OFFER
The delays suggest that Spirit does not have the votes of shareholders to support the deal.
Spirit Airlines has been the subject of a bidding war between Frontier Group and JetBlue Airways.
A Spirit Airlines plane in flight. (iStock)
Spirit signed a cash and stock deal with rival Frontier in February and JetBlue entered the mix in April with a fully cash offer.
JETBLUE OFFER TO BUY SPIRIT AIRLINES FOR ABOUT 3.6 BILLION DOLLARS IN CASH
JetBlue’s bid is higher, but Spirit has said U.S. regulators would stop that deal.
A Frontier Airlines plane passes in front of a Spirit Airlines plane at Indianapolis International Airport. (Photographer: Luke Sharrett / Bloomberg via Getty Images / Getty Images)
Frontier Group’s latest offer for Spirit Airlines causes the consulting firm Institutional Shareholder Services Inc (ISS) to revoke its opinion on a deal.
ISS is now urging Spirit shareholders to vote in favor of a proposed merger with Frontier’s parent company.
THE AIRLINES SPIRIT RACE: JETBLUE, FRONTIER JOCKEY FOR WIN
That’s a change from a month ago, when the advisory firm asked Spirit shareholders to reject Frontier’s offer, saying JetBlue’s competitive bid of $ 30 per share is higher from the point of view. financial view.
A JetBlue plane lands in front of a Spirit Airlines jet by taxi at Fort Lauderdale Hollywood International Airport. (Joe Cavaretta / Sun Sentinel / Tribune News Service via Getty Images / Getty Images)
Spirit said last week that Frontier sweetened its offer, increasing its cash offer by $ 2 per share.
SPIRIT, FRONTIER AND JETBLUE: PROS AND AGAINST
ISS said Frontier’s current bid coincides with the $ 2.00 increase in JetBlue’s bid price and also offers a higher prepayment of $ 2.22 per share compared to $ 1.50 per share. JetBlue action.
Ticker Security Last Change Change% SAVE SPIRIT AIRLINES INC. 22.41 -0.37 -1.62% ULCC FRONTIER GROUP HOLDINGS 9.51 +0.09 + 0.96% JBLU JETBLUE AIRWAYS CORP. 8.96 +0.23 + 2.63%
Frontier also increased its reverse termination rate to Spirit by $ 100 million to $ 350 million.
On Wednesday, Spirit said its board would relate to the two bidders on their bids.
Reuters contributed to this report.