zzdcar
Home
/
Reviews
/
Beyond Cars
/
Frontier Offers Spirit $250 Million Break-Up Fee If Deal Fails
Frontier Offers Spirit $250 Million Break-Up Fee If Deal Fails-August 2024
2024-02-19 EST 22:13:53

Image for article titled Frontier Offers Spirit $250 Million Break-Up Fee If Deal Fails

The negotiations for the acquisition of Spirit Airlines are intensifying between the two carriers in contention, Both airlines have now offered termination fees of at least $200 million if federal antitrust regulators don’t allow the industry reshaping merger to take place.

Frontier Airlines is now offering $250 million as a reverse termination fee to Spirit Airlines. The fee was added to the amended $2.9 billion offer as a response to , a proxy advisory firm, imploring Spirit shareholders to vote against a potential Frontier-Spirit merger. ISS felt that there was cause for concern that the Spirit board decided against auctioning off the airline. The firm also felt any agreement should include a guarantee of value for shareholders.

Ted Christie, President and CEO of Spirit, said:

“Since announcing our transaction with Frontier, we have had extensive constructive conversations with our stockholders, who have expressed support for the strategic rationale of our combination but a desire for additional stockholder protections. After discussing this feedback with the Frontier Board and management team, we have agreed to amend the merger agreement.”

JetBlue sent out a release to comment on the Frontier’s amended offer. Notably, the New York-based airline stated, “The addition of a reverse termination fee in the face of a likely defeat is simply an acknowledgement that the regulatory profiles and timelines of both deals are indeed similar.” JetBlue had already attached a $200 million reverse termination fee to its $3.3 billion offer for Spirit.

Spirit rejected JetBlue’s offer, arguing that federal regulators wouldn’t allow the merger without JetBlue making more concessions. Spirit shareholders are scheduled to vote on the Frontier’s offer on Friday, June 10. If the deal is approved, the merged Frontier-Spirit airline would be the fifth-largest in the United States.

Comments
Welcome to zzdcar comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Beyond Cars
Aircraft Touch Tips During Blizzard At Japanese Airport
Aircraft Touch Tips During Blizzard At Japanese Airport
As at , its port side wing the starboard vertical stabilizer of bound for Hong Kong. This comes at Tokyo’s Haneda Airport, and . “Our aircraft, which was stationary at the time with no customers nor crew onboard, was struck by a Korean Air A330 which was taxiing past,”...
Aug 2, 2025
Crystal Chunks Are Bursting Through The Road In China
Crystal Chunks Are Bursting Through The Road In China
A video of what looks like quartz breaking through the surface of a is making the rounds on . I don’t get over there much, being suspicious of the Chinese over concerns of it spying on its users, as the reports. OK, fine. Actually, I just don’t get the humor...
Aug 2, 2025
2023 Zero DSR/X: The Bike Of The Future, But Not Our Future
2023 Zero DSR/X: The Bike Of The Future, But Not Our Future
The world, in 2023, is cyberpunk. We’ve got the , the , and the that keeps the and the . But in cyberpunk media, people are always riding . Why are we stuck with the same bikes we’ve always had? , it seems, wants to address this grievous wrong....
Aug 2, 2025
Deadliest Train In America Kills 3 People In 2 Separate Collisions At The Same Crossing
Deadliest Train In America Kills 3 People In 2 Separate Collisions At The Same Crossing
operate between Orlando and Miami and hold the unwelcome distinction of being both the first intra-city high speed rail in the U.S. and the , by far. After three people died at a single grade crossing in two separate incidents last week it seems the feds are finally perking...
Aug 2, 2025
Marshmallow Treats Ended Up On The Royal Air Force's No-Fly List
Marshmallow Treats Ended Up On The Royal Air Force's No-Fly List
Over in the United Kingdom, there’s a certain dessert known as a “teacake” — or, as a British friend kindly informed me, it’s more accurately known as a “Tunnock” in Scotland. Basically, the food in question for this particular story are actually a cookie base topped with marshmallow, coated...
Aug 2, 2025
String Of Boeing Failures Continues With 737-800 Flight Turning Back With Cracked Cockpit Windshield
String Of Boeing Failures Continues With 737-800 Flight Turning Back With Cracked Cockpit Windshield
In the wake of recent major , including , , and the debacle that was , it isn’t a good time for further failures by the company. that would , an unrelated 737-800 with a cracked windshield, became international news this weekend. The flight took off from Sapporo-New Chitose...
Aug 2, 2025
Copyright 2023-2025 - www.zzdcar.com All Rights Reserved