The ISS is urging Spirit shareholders to vote for Frontier’s offer by Reuters

The ISS is urging Spirit shareholders to vote for Frontier’s offer by Reuters


© Reuters. FILE PHOTO: Spirit Airlines Airbuys A320-200 Sitting at Gate at O’Hare Airport in Chicago, Illinois, USA, October 2, 2014. REUTERS / Jim Young / File Photo


(Reuters) – Proxy consulting firm Institutional Shareholder Services Inc (ISS) has called on shareholders to Spirit Airlines (NYSE 🙂 Inc. will vote for the proposed merger with Frontier Group Holdings Inc.

“In principle, support for merging with Frontier under revised terms is justified,” the consulting firm said in a report released late Friday and released Saturday.

Spirit is the subject of a war of competition between Frontier and JetBlue Airways (NASDAQ 🙂 Corp.

Proxy advisory firm last month asked Spirit shareholders to reject Frontier’s offer, saying JetBlue’s competitive offer of $ 30 per share was better from a financial standpoint.

Earlier this month, New York-based JetBlue sweetened its offer for Spirit for $ 2 to $ 33.50 per share in cash.

Spirit Airlines said Friday that Frontier has increased its cash offer by $ 2 per share to buy the airline and called on its shareholders to support the merger agreement with Frontier at a meeting next week.

Spirit shareholders are due to vote on a merger agreement with Frontier on June 30th.

The ISS also said Frontier’s current offer seems more desirable because it corresponds to a $ 2.00 increase in JetBlue’s bid price and also provides a higher subscription of $ 2.22 per share compared to $ 1.50 per share from JetBlue.

The Denver-based Frontier has also increased its reverse termination fee to Spirit by $ 100 million to $ 350 million.

The Florida-based Spirit has repeatedly rejected JetBlue’s offer, saying it is unlikely to get approval from U.S. regulators.

However, JetBlue has been adamant and said he still believes his proposal is superior to Frontier’s, adding that he will “more thoroughly” consider and evaluate the revised terms of Frontier’s proposal. (This story corrects the connection of the story in paragraph 5)

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