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Frontier Group’s latest offer to Spirit Airlines prompted the institutional shareholder services (ISS) advisory firm to reverse its opinion on a deal.
ISS urges now Spirit Airlines shareholders To vote on the proposed merger with the parent company Frontier.
This is a change from last month when the consulting firm asked Spirit shareholders to reject Frontier’s offer, Saying the rival offer to JetBlue $30 per share is better financially.
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A Frontier Airlines taxi passes a Spirit Airlines plane at Indianapolis International Airport in Indianapolis, Indiana. (Photo: Luke Sharrett/Bloomberg via Getty Images/Getty Images)
Since early April, Spirit has been the subject of a bidding war between Frontier and JetBlue Airways Corp.
Spiritual Airways Race: JetBlue, the front rider to win
in equilibrium, Integration support The agency consulting firm said in a report published late Friday that it is with Frontier on the revised terms justified.
Spirit Airlines said Friday that Frontier has improved its offer, raising its cash offer by $2 per share and urging its shareholders to support a merger deal with Frontier at next week’s meeting.
A JetBlue passenger plane in front of a Spirit Airlines plane in taxiway at Fort Lauderdale Hollywood International Airport. (Joe Cavaretta/Sun Sentinel/News Tribune via Getty Images/Getty Images)
JetBlue sweetened its offer to Spirit by $2 to $33.50 per share in cash, earlier this month.
Spirit’s shareholder vote on the merger with Frontier is set for June 30.
| ribbon | protection | else | they change | they change % |
|---|---|---|---|---|
| save | Spiritual Airlines Company | 24.54 | +0.71 | + 2.98% |
| ULCC | Front Holding Group | 10.54 | +0.65 | + 6.57% |
ISS said Frontier’s current offer matches the $2.00 increase in JetBlue’s bid and also provides a higher upfront payment of $2.22 per share compared to JetBlue’s $1.50 per share.
JETBLUE offers to buy spiritual airlines for about $3.6 billion in cash
Frontier also increased Spirit’s reverse termination fee by $100 million to $350 million.
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Spirit has repeatedly rejected JetBlue’s bid over concerns about getting approval from US regulators.
Reuters contributed to this report.
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