Spirit Airlines (NYSE: SAVE) has opted to postpone its shareholder meeting set for Friday, until June 30, as it contemplates its next steps with Frontier and JetBlue. The move comes just two days after JetBlue improved its original offer to acquire the discount airline. Spirit shares tumbled 1.2% during premarket trading, meanwhile, JetBlue and Frontier shares slightly rose.
“The special meeting was postponed to allow the Spirit Board of Directors to continue discussions with Spirit stockholders, Frontier and JetBlue Airways,” the low-cost airline said in a statement.
Spirit has had a merger agreement with Frontier since February, and the airline’s shareholders were meant to vote on the cash-and-stock deal at the meeting Friday. However, JetBlue is pressuring Spirit stockholders to reject the agreement. Nevertheless, Spirit has preciously rejected JetBlue’s offers as it fears the deal will be denied by federal regulators.
Following the announcement to push back its shareholder meeting, JetBlue’s Chief Executive Officer stated “We welcome this development as a necessary first step toward genuine negotiations between the Spirit Board and JetBlue. Spirit shareholders are clearly urging the Spirit Board to engage with us constructively and provide us with the same information previously made available to Frontier so that we can reach a consensual transaction.”
“The improved proposal we submitted to the Spirit Board earlier this week clearly offers the most compelling value available for Spirit stockholders and we remain fully committed to acquiring Spirit. We are confident a combined JetBlue-Spirit will create a true national competitor to the dominant big four carriers that will result in lower fares and better service for customers while offering Spirit shareholders the most attractive value-creating opportunity available to them.”