Frontier Group Holdings, Inc. Stock Price, News & Analysis

Spirit Airlines plans to adjourn its Special Meeting of Stockholders originally scheduled for June 30, 2022, to allow further discussions with Frontier and JetBlue regarding a proposed merger. The meeting will reconvene on July 8, 2022, at 11:00 AM ET. Stockholders recorded as of May 6, 2022, are eligible to vote, and those who wish to change their votes are encouraged to submit proxies promptly. Spirit invites stakeholders to follow updates through the SEC filings related to the tender offer.

JetBlue (NASDAQ: JBLU) asserts that its acquisition proposal for Spirit (NYSE: SAVE) is vastly superior to Frontier's (NASDAQ: ULCC) offer, emphasizing all-cash benefits, higher upfront value, and a commitment to customer competition against major airlines. JetBlue's strategy promotes lower fares and enhanced experiences for travelers, alongside greater job opportunities for employees. Analysts support JetBlue's bid while expressing skepticism about Spirit's financial projections under Frontier. JetBlue calls for Spirit shareholders to reject the Frontier deal and back its proposal.

On June 28, Spirit Airlines President and CEO Ted Christie discussed the merger agreement with Frontier Airlines on CNBC's Mad Money. Christie highlighted that this merger could deliver over $50 per share in value for Spirit's shareholders, significantly exceeding the valuation proposed by JetBlue. Leading independent proxy advisory firms recommend stockholders vote in favor of the Frontier merger, which is perceived as more advantageous and less challenging from a regulatory perspective. The Special Meeting for stockholders to vote on the merger is scheduled for June 30, 2022.

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.

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.

Frontier Group Holdings criticized JetBlue's efforts to acquire Spirit Airlines, labeling them as misleading and anticompetitive. Frontier argues that JetBlue's acquisition would reduce market capacity and increase fares, contradicting its claims of fostering competition. JetBlue's proposal is seen as unlikely to gain regulatory approval due to these fatal flaws. Meanwhile, Frontier's merger with Spirit promises to enhance competition by increasing output and lowering prices. Frontier asserts that a combination of the two would stimulate demand and challenge larger airlines, unlike JetBlue's plan.

Frontier Group Holdings (NASDAQ: ULCC) has reiterated its commitment to the proposed merger with Spirit Airlines (NYSE: SAVE), emphasizing the long-term value and upside potential it offers to Spirit stockholders. In a recent letter, Frontier highlighted that the merger can value Spirit stock at over $50 per share compared to JetBlue's proposal, which caps at $33.50. The agreement includes increased cash consideration totaling approximately $450 million and a raised reverse termination fee of $350 million. Notably, leading advisory firms ISS and Glass Lewis back the merger.

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.