Spirit Airlines confirmed Wednesday that it has postponed a Friday meeting about its planned merger with Frontier, but stated it has not transformed its mind about the combination despite a rival provide from JetBlue.
JetBlue earlier this week said it would offer a $350 million reverse crack-up payable to Spirit if its offer with Frontier will not go through for antitrust motives. That is $150 million more than JetBlue previously made available to pay out.
In a Wednesday press release, Spirit reported it remains “sure by the terms of the merger agreement with Frontier.” It included that its “board has not decided that possibly JetBlue’s unsolicited tender offer or its up to date proposal obtained on June 6 constitutes a Remarkable Proposal.”
Spirit has postponed the Friday conference right until June 30.
What about the passengers? How will buyers fare if Spirit merges with JetBlue or Frontier?
Spirit did not immediately answer to an e mail in search of remark.
Less than its new proposal, JetBlue said it would prepay $1.50 per share in dollars, about $164 million, of the reverse split-up price, in the sort of a hard cash dividend to Spirit stockholders promptly adhering to the Spirit stockholder vote approving the blend involving Spirit and JetBlue. Spirit stockholders would in the long run acquire $30 per share in dollars at the closing of the transaction and the prepayment of $1.50 for every share of the reverse split-up price.
JetBlue’s announcement arrives fewer than a 7 days after Frontier Airlines added a $250 million termination cost to its proposal. Denver-based Frontier’s income-and-stock supply – which is unanimously supported by Spirit’s board – experienced been valued at $2.9 billion when it was announced, but it has misplaced some of its benefit considering that then.
Shares of JetBlue and Frontier Team Holdings Inc. rose somewhat prior to the current market open up, while Spirit’s stock jumped 5.5%.
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Contributing: Jayme Deerwester, Usa Today