Before a shareholder meeting at the end of the month, Spirit Airlines’ board of directors will decide on competing offers from JetBlue Airways and Frontier Airlines.
As the battle for the bargain carrier heats up, Spirit Airlines announced Tuesday that its board will vote on competing offers from JetBlue Airways and Frontier Airlines before a shareholder meeting at the end of the month.
Spirit CEO Ted Christie said in a statement that the board “expects to put the process to a close and offer an update to stockholders” before its June 30 meeting.
Spirit has postponed a shareholder vote on the existing Frontier contract from June 10 to June 30 in order to evaluate the proposals.
Spirit’s stock increased by more than 3.4 percent on Tuesday, while Frontier’s stock increased by 1.5 percent and JetBlue’s stock increased by 0.5 percent following Spirit’s announcement.
JetBlue increased its offer to buy Spirit on June 6, increasing the reverse break-up fee to $350 million if regulators reject the deal. Spirit has had a merger agreement with Frontier, another ultra-low-cost carrier, since February and is still bound by the terms of that cash-and-stock arrangement, according to the company.
Frontier offered a reverse break-up fee of $250 million. JetBlue increased its cash offer from $30 to $31.50 per share by prepaying $1.50 per share from the break-up charge to shareholders.
“As part of this process, Frontier and JetBlue will have access to the same due diligence material under the same conditions,” Christie added.
After Spirit repeatedly rejected JetBlue’s buyout bids, JetBlue accused Spirit of not allowing equitable access to its information.