• Spirit to hold shareholder vote on June 30
• Airline provided information to DoJ and FTC for both deals as part of ongoing antitrust review process
Spirit Airlines Inc (NYSE: SAVE) on Tuesday said it was in talks with JetBlue Airways Corp (NASDAQ: JBLU) over a proposed $3.4 billion sweetened sellout offer and expects to make a decision this month.
The Florida-based ultra-low-cost airline granted JetBlue access to the same due diligence information being shared with Frontier Group Holdings Inc (NASDAQ: ULCC).
Spirit CEO Ted Christie said the board plans to "bring this process to a conclusion" and update investors ahead of the June 30 shareholder meeting.
Last Wednesday, Spirit said it had postponed the shareholder vote on its sale to Frontier from June 10 to June 30, as it assessed that the company did not have enough votes in favor of the deal.
"We're pleased that there now seems to be a genuine desire from the Spirit board to engage with us," JetBlue CEO Robin Hayes told Reuters on Friday, adding that he was "optimistic" that a deal could be reached.
"We're going to continue to engage with the Spirit board over the next few weeks."
However, Spirit continues to be in talks with Frontier under the terms of its existing merger agreement.
Documents submission for regulatory review
Either of the deals would create the fifth-largest US airline, helping to compete with more prominent legacy players at a time when the industry faces labor and aircraft shortages.
Spirit said it provided the information requested by the US Justice Department and the Federal Trade Commission (FTC) for both the deals as part of an ongoing antitrust review process.
JetBlue's CEO told Reuters that the airline had provided documents to the Justice Department and the regulatory process is underway.
"That process takes several months, and... the conversations then would happen when you're well into that process," Hayes said.
Picture Credit: Seeking Alpha
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