A Spirit Airlines plane on the tarmac on the Fort Lauderdale-Hollywood International Airport on February 07, 2022 in Fort Lauderdale, Florida.
Joe Raedle | Getty Images
Spirit Airlines said Tuesday its board will choose competing offers from JetBlue Airways and Frontier Airlines before a shareholder meeting at the tip of the month because the battle for the discount carrier heats up.
“The Board expects to bring the method to a conclusion and supply an update to stockholders” ahead of its June 30 meeting, Spirit CEO Ted Christie said in an announcement.
Spirit postponed a gathering where shareholders would vote on the prevailing Frontier deal from June 10 until June 30 to review the bids.
Spirit’s shares rose greater than 3.4% on Tuesday, while shares of Frontier added 1.5% and JetBlue’s rose 0.5% after Spirit’s statement.
JetBlue made a sweetened offer to purchase Spirit on June 6, raising a reverse break-up fee to $350 million should regulators not approve the acquisition. Spirit has had a merger agreement with fellow ultra-low-cost airline Frontier since February and continues to be sure by the terms of that cash-and-stock deal, it said.
Frontier offered a $250 million reverse break-up fee. JetBlue’s included prepaying $1.50 a share from the break-up fee to shareholders to boost its offer from $30 a share to $31.50 in money.
“As a part of this process, Frontier and JetBlue are being given access to the identical due diligence information, on the identical terms,” Christie said.
JetBlue previously accused Spirit of not granting equal access to its information after Spirit repeatedly rebuffed JetBlue’s buyout offers.