Spirit Airls Inc Stock Price, News & Analysis

JetBlue has issued an open letter to Spirit shareholders urging them to vote against the proposed Frontier transaction. The letter emphasizes that JetBlue's offer includes a superior all-cash price of at least $33.50 per Spirit share, representing a 51% premium. Key benefits of the JetBlue proposal include an accelerated payment of $2.50 per share and a $400 million reverse break-up fee. JetBlue argues that shareholders will receive more cash with its offer than they would under Frontier's deal. The letter also criticizes Spirit's Board for its ties to Frontier and lack of engagement with JetBlue.

Spirit Airlines has reiterated its strong recommendation for shareholders to vote FOR the merger with Frontier Airlines on the WHITE proxy card ahead of the Special Meeting on June 30, 2022. The company asserts that Frontier's offer, presenting potential value of at least $50 per share, is superior to JetBlue's recent bid. Spirit's management highlights serious regulatory concerns surrounding the JetBlue proposal, suggesting it lacks a clear path to approval. The company aims to emphasize the certainty and value offered by the Frontier merger.

JetBlue (NASDAQ: JBLU) has received favorable support from the Institutional Shareholder Services (ISS) for its acquisition offer for Spirit (NYSE: SAVE), which ISS describes as 'preferable' to the Frontier proposal. Major Spirit shareholder TIG Advisors publicly opposes the Frontier deal, arguing that JetBlue's all-cash bid significantly reduces execution risk and assures value. Amid the approaching special shareholder meeting, ISS has provided guidance on how clients can adjust their votes away from the Frontier merger, especially in light of Spirit's share price dropping 8% following the revised Frontier offer.

TIG Advisors, which owns approximately 2 million shares of Spirit Airlines (SAVE), expressed intentions to vote against Spirit's proposed merger with Frontier Group (ULCC) at the upcoming special stockholders' meeting on June 30, 2022. They argue JetBlue's (JBLU) all-cash offer of $33.50 per share is superior, as it eliminates execution risk and maximizes shareholder value by offering $470 million upfront. The letter asserts that the Board's preference for the Frontier deal is detrimental to shareholder interests and emphasizes the likelihood of JetBlue's merger receiving regulatory approval.

JetBlue (NASDAQ: JBLU) has modified its proposal to acquire Spirit Airlines (NYSE: SAVE) in response to shareholder feedback, introducing a monthly ticking fee and raising the reverse breakup fee to $400 million. The accelerated prepayment has been increased to $2.50 per share. JetBlue urges Spirit shareholders to vote against Frontier's inferior offer, emphasizing its superior cash offer of at least $33.50 per share, providing a 52.1% premium over Frontier’s proposal. The adjustments aim to enhance shareholder value and certainty.

Spirit Airlines (SAVE) received favorable recommendations from independent proxy advisory firms, ISS and Glass Lewis, urging stockholders to vote FOR the merger with Frontier. The Special Meeting for stockholders is scheduled for June 30, 2022. ISS highlighted that the merger with Frontier offers better long-term value compared to JetBlue's all-cash offer, including a higher prepayment and potential upside from synergies. Spirit emphasizes the importance of voting, stating that non-voting equates to a vote against the merger.

JetBlue (NASDAQ: JBLU) asserts that its proposal for Spirit Airlines (NYSE: SAVE) is superior to the revised Frontier deal. JetBlue offers $33.50 per Spirit share, representing a 38% premium over Frontier's amended proposal as of June 24, 2022. The airline plans to continue its "vote no" campaign against Frontier's deal at the upcoming Spirit special meeting. JetBlue argues that Spirit's board mischaracterizes the value of the Frontier deal and maintains that regulatory clearance for their transaction is feasible, backed by external expert analyses.

Spirit Airlines has reinforced its recommendation for stockholders to approve the merger with Frontier, following an assessment of JetBlue's recent proposal, which was deemed not superior. The updated agreement includes an increase in cash consideration to $4.13 per share and a $2.22 cash dividend post-approval. A special meeting is set for June 30, 2022. Spirit anticipates that the merger will yield significant synergies, potentially pushing stockholder value to over $50 per share by 2024.

Spirit Airlines (NYSE: SAVE) received recognition at Seattle-Tacoma International Airport and Los Angeles International Airport for its low noise levels in 2021, earning top honors in the Fly Quiet Awards and LAX Fly Quieter Program. The airline's Fit Fleet® showcases modern, fuel-efficient Airbus A320 aircraft, contributing to lower takeoff noise. Spirit is committed to minimizing noise impacts on local communities while maintaining operational excellence. These awards reflect efforts in noise abatement, showcasing Spirit as a leader in sustainable airline practices.