Spirit Airlines has delayed the decision-making process leveraging its partnership with Frontier Airlines amid concerns about lack of shareholder support. Frontier Airlines’ CEO, Barry Biffle, requested a voting extension until July 27, CNBC reported.
“We still remain very far from obtaining approval from Spirit stockholders,” Biffle said in the letter. He said the cash-and-stock offer was Frontier’s “best and final” bid.
The set-back marks the fourth of its kind to be announced by the company as concerns about a decline in shareholder support arise. The airline confirmed plans to vote later this month to complete the bid attracting Frontier and Jetblue Airways.
The airlines would collectively make up the fifth-largest U.S. carrier.
JetBlue CEO Robin Hayes discussed the delay, marking a “significant progress” in its discussions with Spirit.
“JetBlue is now standing ready to enter into a binding merger agreement with Spirit as soon as practicable,” Hayes said in a statement.
If Spirit withdraws its proposal amid finding an alternative, it’d be liable to a $94 million breakup fee.
The airline previously “rebuffed JetBlue’s all-cash takeover offers, even in light of repeatedly sweetened terms, arguing it wouldn’t pass muster with regulators. But most recently Spirit said it is negotiating with both airlines, raising doubts about the fate of the tie-up with Frontier,” a recent press release reveals.