MIAMI – Frontier Airlines, probably going through a defeat in its bid to merge with Spirit Airlines, is asking for one other delay in a shareholder vote on the deal.
Frontier CEO Barry Biffle stated in a letter made public Monday that his airline is “very far” from profitable approval by Spirit shareholders, who’re weighing a richer buyout supply from JetBlue Airways.
A shareholder vote at Miramar-based Spirit, already postponed 3 times, is scheduled for Friday.
Spirit’s board has stood behind a February deal it struck with Frontier to hitch the two low cost airways.
“However, we still remain very far from obtaining approval from Spirit stockholders based on the proxy data we received as of July 8,” Biffle stated to Spirit CEO Ted Christie and General Counsel Thomas Canfield.
Biffle requested for one other delay in the vote, till July 27, if the merger plan nonetheless lacks the votes for approval in order that Frontier can proceed to foyer Spirit shareholders.
Biffle stated that if Spirit’s board adjustments its thoughts and helps the JetBlue bid, Frontier would waive its proper to match the supply.
Frontier is providing Spirit shareholders $4.13 in money and about 1.9 shares of Frontier for each share of Spirit, or about $2.4 billion at Frontier’s present share worth. Spirit shareholders would personal 48.5% of the mixed airline.
JetBlue is providing $33.50 per share in money and as much as $34.15 per share – or about $3.7 billion – together with a ticking price to cowl a delay in closing the buy.