Spirit shareholders urged to back Frontier merger despite counter JetBlue bid

A special meeting of Spirit Airlines shareholders is due on Thursday to consider an amended merger proposal made by US low-cost rival Frontier.

The June 30 meeting is set to determine the future of Florida ultra-budget carrier Spirit in the face of a rival bid from JetBlue.

Two advisory firms have now recommended Spirit shareholders vote for the deal with Frontier, which sweetened its offer on Friday with improved terms in a deal worth $2.7 billion, but still below JetBlue’s valuation.

Spirit president and chief executive Ted Christie said: “We are very pleased that both leading proxy advisory firms – ISS and Glass Lewis – recommend that stockholders vote in favour of our merger with Frontier. 

“We are especially grateful to our team members who have stayed focused on providing the best experience for our guests while the board conducted its process, arriving at the best possible outcome for Spirit and its stockholders. 

“We look forward to our stockholder vote on June 30 and continuing our ongoing discussions with regulators as we advance toward completing the transaction and delivering on the value of this combination for our stockholders, team members and guests.”

“While we appreciate the great support from Spirit stockholders who have voted, we remind all Spirit stockholders that not voting will have the same effect as a vote against the merger.”

In response, JetBlue said: “We continued to believe JetBlue’s proposal is decisively superior to the Frontier transaction. even considering its revised terms, and it continues to offer Spirit shareholders significantly more value, more cash, more certainty, and more regulatory protections.”

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