Spirit and Frontier to Merge

Box hauler said:
Now they moved the vote to July 8th so TC can find a way to save his golden parachute. Sick of this BS already and we haven’t even begun to merge.
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"Spirit would not have postponed tomorrow's meeting if they felt they had the votes," said Henry Harteveldt, a travel industry consultant and president of Atmosphere Research Group. Spirit didn't comment on whether that is the case.
 
Cherokee_Cruiser said:
"Spirit would not have postponed tomorrow's meeting if they felt they had the votes," said Henry Harteveldt, a travel industry consultant and president of Atmosphere Research Group. Spirit didn't comment on whether that is the case.
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Couldn’t be more obvious. Spirit employees get emails from the CEO trying to sell them on why the F9 deal is better fairly often and it comes across like he’s trying to convince his parents to give him a later curfew. It’s pretty lame
 
Box hauler said:
Couldn’t be more obvious. Spirit employees get emails from the CEO trying to sell them on why the F9 deal is better fairly often and it comes across like he’s trying to convince his parents to give him a later curfew. It’s pretty lame
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He’s really going for the gaslighting strategy. I’m sure he’ll be sued for dereliction of duty.
 
skypilot6 said:
Shareholder Vote has been delayed for a 3rd time.

www.cnbc.com

Spirit delays shareholder vote on merger hours before meeting to continue deal talks with Frontier, JetBlue

Spirit Airlines said Wednesday that it would delay a shareholder vote on its proposed merger with Frontier Airlines scheduled for tomorrow until July 8.
www.cnbc.com www.cnbc.com
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They can place whatever date they want on it. A vote won’t happen anytime soon unless the NK board already knows the outcome and it’s the deal that will put the most money in their pockets. This deal is their personal piggy bank and they could care less about the future or the shareholders as long as they get theirs.
 
Box hauler said:
They can place whatever date they want on it. A vote won’t happen anytime soon unless the NK board already knows the outcome and it’s the deal that will put the most money in their pockets. This deal is their personal piggy bank and they could care less about the future or the shareholders as long as they get theirs.
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Probably.

But that said, if they want their personal piggy bank maxed out NOW, the JetBlue deal is the one. As it stands, the F9 deal is what they really seem to want for larger rewards much down the road.

I don’t believe any of these stories that the DOJ won’t approve a B6/Nk or a NK/F9 deal. A #5 being a #5 still, is gonna get passed.
 
skypilot6 said:
Looks like Frontier does not have the votes.

www.marketwatch.com

Frontier asks Spirit Airlines to further delay shareholder vote on merger deal

Frontier Group Holdings Inc. said it still needs more time to garner support for its bid to merge with Spirit Airlines Inc., and asked for Spirit’s...
www.marketwatch.com www.marketwatch.com
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There is no way they get the votes to beat JB’s offer and the fact that they want more time to sway voters while they admit they won’t be offering any more capital to this deal is just dumb. B6 is going to win this so stop delaying the inevitable. That said, NK will delay the vote again…
 
amorris311 said:
Have you submitted your demand letter to the Spirit BOD yet? That would be a good start to answer some of the questions I am sure you have as a shareholder.

Assuming you have not, the Spirit BOD has the responsibility to examine all offers and take what is best for all shareholders. Not doing so opens the members of the Board up to a host of litigation. Delaware Chancery court has several seminal rulings on how Boards must respond to the offers and I’m certain the lawyers representing Spirit are keenly aware of their duties and have made them known to the members.

If you want to have a lot of fun take a look at Unocal and Revlon lawsuits from the mid 70’s in Delaware. That will, at the very least, give you a good baseline and understanding as to how the members of the Board have to analyze offers.
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roundout said:
I’m sure the Spirit BOD has taken in to consideration everything that you’ve identified (and more!)
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roundout said:
you’re seriously positioning as having more knowledge of the financial transaction taking place* than the financial gurus who are paid much more than any of us to analyze the deal?

*probably

Bro.

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amorris311 said:
I do not know the specifics of either offer. There is what is reported in news outlets but it does not give specifics. For example, let’s say Co. A offers to buy Spirit at $50 a share. However, the terms state they will buy the first 50% of those shares for cash then the next 50% will be through bonds. Now Co. B comes along and offers to buy at $52 a share but only the first 40% then the next 30% is at market rate, then the next 30% is in bonds. Which one is the better offer in this exercise?

These deals are complex and have plenty of contingencies that never or do not get reported or made public. If I were to guess the Fontier deal is probably better for more shareholders than the JB deal. Just because you read what they claim they will buy the stock at is not the whole picture. This is why the BOD has a fiduciary responsibility to weigh all the factors and make the most prudent choice for their current shareholders.

I am over simplifying this just to help paint a picture for you. This is not unique to this merger and once terms become public you’ll be able to hone in and focus on why the Spirit BOD made the decisions they did.
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Wonder if any of you changed your mind now? It’s almost as if it’s going down exactly as some of us said it would.

You can’t tell me as an investor that the current JetBlue deal at 33.50\share is worth “less” than the supposed Frontier deal which FINALLY got upped from a measly 2.13/share to 4.13/share and 1.9126 ratio of shares to ULCC, and posing some hypothetical that the stock “may” approach $40-50 in a couple years.

Yeah right.

Fiduciary duty REQUIRES the board to accept the higher offer, the biggest payout for investors. There’s a reason the F9 deal has been pushed off three times now. They want F9 badly, investors want their money - now, not some supposed could-be case later.

Break up fees. F9 has played the fear card that jetBlue and SAVE wouldn’t pass DOJ approval. That’s just horse manure. The 5th biggest airline being the 5th biggest airline is going to pass, with some divestures here and there. The big 4 control 80 some percent of travel capacity. There isn’t any stopping the remaining smaller players from trying to merge and compete better in the other remaining 20%.
 
I don't get why F9 is asking the vote to be delayed again. You're not offering anymore money, so what's the point? You're not gonna say sway the shareholders to take less money and hope that the stock value will just increase more than what B6 is offering

This battle is lost to B6, just end the pointless madness and wave the white flag

The "merger is less likely to happen with B6 over F9" isn't gonna work, and B6 already offered a nice incentive in case it doesn't pass the DOJ.

And what makes you think an F9 NK merger looks more likely to merge? Because you're both ULCC? Lol
 
Bro, switch to decaf.

i don’t think I made any predictions in this thread. The reason? Fear of public humiliation. Or, rather, that I’m not an expert so I ask questions, just maintain, and wait to see what happens.
 
roundout said:
Bro, switch to decaf.

i don’t think I made any predictions in this thread. The reason? Fear of public humiliation. Or, rather, that I’m not an expert so I ask questions, just maintain, and wait to see what happens.
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Is somebody yelling at you?
 
Yurie158 said:
I don't get why F9 is asking the vote to be delayed again. You're not offering anymore money, so what's the point? You're not gonna say sway the shareholders to take less money and hope that the stock value will just increase more than what B6 is offering

This battle is lost to B6, just end the pointless madness and wave the white flag

The "merger is less likely to happen with B6 over F9" isn't gonna work, and B6 already offered a nice incentive in case it doesn't pass the DOJ.

And what makes you think an F9 NK merger looks more likely to merge? Because you're both ULCC? Lol
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I asked the same. The answer was, because F9 offering more money is just competing with itself (apparently). That the vote is for the F9 merger. And not a vote for JetBlue. Well, the logical conclusion is if the F9 deal falls apart (not shareholder approved), the only natural conclusion then is the B6 buyout.

Frankly, it’s disappointing just how “laid back” (and arrogant) F9 has been through this ordeal. It’s like that they thought it was a bullet proof plan, even when JetBlue jumped in. JetBlue upped their offer one time and F9 didn’t match. Only after a delay of vote did F9 come back and increase their cash offer (ponied up more cash). I don’t think anybody what would foreseen 3 (now I think?) delays of a vote on merger.
 
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