Frontier Airlines' parent firm said Thursday it would pay Spirit Airlines $250 million if authorities block its planned merger for antitrust reasons.
The announcement was made in an effort to convince investors to approve the deal next week, as rival JetBlue Airways attempts to acquire Spirit outright.
New York-based JetBlue offered $33 per share or $3.6 billion in cash for Spirit in April, over the $2.9 billion cash-and-stock deal announced in February.
JetBlue filed a $30 per share tender offer and urged Spirit shareholders to reject the merger last month.
Spirit said that a partnership with JetBlue would likely be turned down by regulators.
If the deal is turned down by the government, JetBlue's offer includes a reverse breakup fee of $200 million.
Institutional Shareholder Services urged Spirit shareholders to vote against the Frontier acquisition
The shareholder meeting of Spirit is scheduled for June 10.
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