July 12 (Reuters) – Spirit Airways Inc (SAVE.N) shareholder Discovery Capital Administration LLC on Tuesday urged the low-cost provider to desert its merger with Frontier Group Holdings Inc (ULCC.O) in favor of a bid from JetBlue Airways Corp (JBLU.O).
Discovery turned the second main Spirit shareholder to publicly again a merger with JetBlue, which is vying with Frontier to develop in the USA and create the nation’s fifth-largest airline. Discovery owns 1.4% of Spirit.
Final month, Spirit shareholder TIG Advisors LLC additionally knowledgeable the provider’s board of administrators that it intends to vote in opposition to Frontier’s bid with the low-cost provider.
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The Spirit shareholder vote, which has been delayed twice earlier than, was pushed again for a 3rd time to allow the airline to have extra conversations with JetBlue and Frontier to finalize a deal.
Nonetheless, Frontier on Monday declined to additional elevate its bid for Spirit, probably drawing the curtains on its months-long bidding conflict with JetBlue. learn extra
Institutional Shareholder Providers (ISS) final month stated JetBlue’s newest provide to purchase Spirit was “extra favorable” for the ultra-low-cost airline’s shareholders, however maintained its help for the Frontier deal. learn extra
“We echo the opinion of ISS that the JetBlue proposal is extra favorable, and we implore SAVE administration to desert the Frontier Merger directly,” Discovery stated in a press release.
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Reporting by Nathan Gomes in Bengaluru; Modifying by Devika Syamnath
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