(MIRAMAR, FLA) — UPDATE — Broward based Spirit Airlines says it’s again delaying a vote on a planned merger with Frontier Airlines because Spirit shareholders are holding out for a better offer. Frontier is in a bidding war with JetBlue Airways for Spirit. Now, the Spirit shareholder vote planned for Friday will be pushed back to July 27th.
Spirit has rejected JetBlue’s $30-a-share cash offer in favor of Frontier’s cash-and-stock offer, which was valued Friday at about $21 a share. The reason, according to Spirit, is that JetBlue has a greater likelihood of rejection by the Justice Department. Spirit shareholders now are voting on whether to take the Frontier deal or reject it for JetBlue’s cash.
Denver-based Frontier has a focus on the Rocky Mountain region of the United States. They’ve also got focus cities, or smaller hubs, in nine other US cities including Miami and Atlanta. Most 115 of Frontier’s destinations are within the United States.
JetBlue has hubs in New York City, Boston, Washington, DC and Fort Lauderdale. Flights to the majority of their East Coast destinations are readily available and booking, cancellations and changes are also a little easier to navigate with JetBlue.
Spirit Airlines postponed Friday’s the deadline for a possible merger with Frontier Airlines for $2.4 billion.
Spirit said the vote was postponed to allow more time to continue discussions with Frontier and rival airline JetBlue which is offering $3.6 billion. It’s the third time the vote has been put off.