Spirit Airlines (NYSE:
SAVE) dropped 6% after a NYSE notice reportedly indicated that shareholders would have to be holders of record in order to get a $2.50/share special dividend associated with the company's planned sale to JetBlue (NASDAQ:
JBLU).
An NYSE notice today indicated that shareholders of record on Sept. 12 would be the only holders able to get a $2.50/share special dividend as part of the original agreement from late July, according to traders, who saw a copy of the NYSE notice that was circulating.
JetBlue (
JBLU) announced in late July that it agreed to acquire Spirit Airlines (
SAVE) for $33.50/share in cash,
including a prepayment of $2.50 per share in cash payable upon Spirit stockholders’ approval of the transaction.
There was an expectation before the NYSE notice today that an individual didn't have to be a shareholder of record to get the $2.50/share dividend, according to traders.
JetBlue (
JBLU) and Spirit (
SAVE) didn't immediately respond to Seeking Alpha request for comment.
Earlier this month Spirit (
SAVE) set its holder vote for its sale to JetBlue
for Oct. 19.
Earlier this month Sen. Elizabeth Warren (D-MA) requested that that the U.S. Department of Justice heavily scrutinize the airline deal and u
ltimately block the combination.