Twists and turns in takeover battle for Spirit Airlines -Breaking
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© Reuters. FILEPHOTO: Spirit Airlines’ A320-200 sits at an O’Hare Airport gate in Chicago on October 2, 2014.REUTERS/Jim Young(Reuters) – Spirit Airlines (NYSE.) Inc has delayed the June 30 shareholder meeting in order to allow shareholders to cast their votes on Frontier Group Holdings Inc’s proposed merger.
It was initially scheduled that the airline would vote on the agreement on June 10, but the move comes just two days after JetBlue Airways Corp (NASDAQ:) Corp increased its offer to buy Spirit.
These are the major events of the Takeover Saga.
The Date of Development
February 7 Frontier offers $25.83/share cash and stock to Spirit
Airlines
Feb. 8, U.S. Justice Department Lawyers Say Spirit and Frontier Are Not Safe
Combining to make the fifth-largest national airline would be a great idea.
You will be closely observed
March 10, 2010: Several advocacy groups call upon the U.S. regulators not to allow them to do so.
Frontier offers Spirit to the public
April 5 JetBlue receives an unsolicited $3.6 Billion, or $33/share in all cash, from JetBlue
Spirit auction
April 6 JetBlue fights for its $3.6 Billion unsolicited offer
Spirit is a bid, and it adds that it is highly confident about securing
Approval by regulatory authorities
April 7 Spirit confirms it is in discussions with JetBlue
As it is likely to lead to a “superior” offer of $3.6 billion,
“Proposal” for the Frontier
JetBlue’s offer of $33/share to May 2 Spirit was rejected by Spirit, claiming it had low expectations.
Possibility of receiving regulatory approval
Sun Country Airlines Head May 10, Sun Country Airlines backs potential
Fusion in the ultra-low cost airline sector
Spirit, May 11, announces it will have a shareholder meeting June 10 to discuss a possible acquisition.
You can vote for its merger proposal with Frontier
JetBlue offers $30/share hostile cash takeover to JetBlue.
It was willing to “negotiate with good faith a consensual transact”
Starting at $33
Spirit Airlines urges its shareholders to refuse the hostile offer made by May 19.
JetBlue claimed that it was a “cynical attempt” to displace its merger
Frontier
May 31, Proxy advisory company ISS calls on Spirit shareholders to reject a
Frontier proposed merger
June 2 Frontier agreed to pay a $250 million breakup fee in order to be able to compete with Google.
Spirit Airlines’ $2.9 Billion acquisition could be saved
June 3, Shareholder advisory firm Glass Lewis recommends Spirit Airlines
Investors approve Frontier Group’s $2.9 Billion takeover offer
It was the best available at that time.
JetBlue’s takeover bid for Spirit is sweetened by $31.50 per customer on June 6,
Share in cash: $30 for each share upon closing of the deal
A prepayment for the reverse breakup fee of $1.50 is required.
Spirit Airlines delay June 8 to June 30 shareholder meeting to be voted on
Frontier is the proposed merger.
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