Spirit Airlines has again delayed its shareholder vote on the proposed merger with Frontier Airlines. A new date for the special meeting has been set for July 27.
The news comes following the request for an adjournment by Frontier Airlines in a letter to Spirit, which stated that it would not raise its offer again and indicated that it was far from gaining the shareholder approval it needs to continue with the merger based on the proxy data so far.
Meanwhile, an investor in Spirit Airlines – Discovery Capital Management – has published an open letter requesting that the record date of the special meeting is changed from May 6 to June 30 to ensure all shareholders are allowed to vote on the proposed merger with Frontier.
“While we are currently able to vote over 200,000 shares of SAVE stock based upon that record date, we are still unable to vote a substantial portion of our holdings acquired since. We urge Spirit to change the record date to allow all current shareholders to vote at the Special Meeting,” said the letter.
Based on average daily trading volumes of SAVE shares, Discovery Capital Management estimates that over 55% of the currently held SAVE common stock is likely unable to vote at the Special Meeting as it was acquired after May 6. “This has created a worrisome situation whereby current SAVE shareholders are being disenfranchised of their full economic rights”.