Soul said that controllers probably wouldn’t agree to a deal with JetBlue. In case regulators don’t approve of the deal, JetBlue will have to pay a $200 million fee to get out of it.
For what it’s worth, JetBlue, for what it’s worth, said in a statement on Thursday that the Spirit board “just went back to Frontier under pressure when it became clear that their investors would reject the Spirit Board’s imperfect cycle and Frontier’s mediocre exchange.”
The New York carrier said, “The increase of a reverse end cost despite a possible loss is basically confirmation that the administrative profiles and events of the two arrangements are in fact the same.”
Institutional Shareholder Services, a proxy advisory firm, told Spirit investors on Tuesday that they should vote against the Frontier deal because there is no reverse end expense.
On Friday, Soul CEO Ted Christie said on “Screech Box” that he is “confident” that the opposite end charge will get ISS to change its proposal. ISS chose not to say anything.
Glass Lewis, an intermediary warning firm, said early Friday that Spirit investors should back the Frontier offer. They pointed out that the “last-minute inclusion” of the other separation cost should help ease concerns that the controllers could stop the deal.
Soul’s meeting with investors is scheduled for June 10.
