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Frontier Group’s latest offer for Spirit Airlines causes institutional consulting firm Shareholder Services Inc (ISS) to revoke its opinion on a deal.
ISS is now urging Spirit Airlines shareholders to vote in favor of a proposed merger with Frontier’s parent company.
That’s a change from a month ago, when the advisory firm asked Spirit shareholders to reject Frontier’s offer, saying JetBlue’s competitive bid of $ 30 per share is higher from the point of view. financial view.
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A Frontier Airlines plane passes in front of a Spirit Airlines plane at Indianapolis International Airport in Indianapolis, Indiana. (Photographer: 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.
THE AIRLINES SPIRIT RACE: JETBLUE, FRONTIER JOCKEY FOR WIN
“In general, support for the merger with Frontier on the revised terms is justified,” the proxy advisory firm said in a report released Friday afternoon.
Spirit Airlines said Friday that Frontier sweetened its offer, increasing its cash offer by $ 2 per share and urged its shareholders to support a merger deal with Frontier at a meeting next week.
A JetBlue plane lands in front of a Spirit Airlines plane by taxi at Fort Lauderdale Hollywood International Airport. (Joe Cavaretta / Sun Sentinel / Tribune News Service via Getty Images / Getty Images)
JetBlue had sweetened its offer for Spirit to between $ 2 and $ 33.50 per share in cash, earlier this month.
JETBLUE UPS ANTE FOR SPIRIT
Spirit shareholder voting on the merger with Frontier is scheduled for June 30th.
Ticker Security Last Change Change% SAVE SPIRIT AIRLINES INC. 24.54 +0.71 + 2.98% ULCC FRONTIER GROUP HOLDINGS 10.54 +0.65 + 6.57%
ISS said Frontier’s current bid coincides with the $ 2.00 increase in JetBlue’s bid price and also offers a higher prepayment of $ 2.22 per share compared to $ 1.50 per share. JetBlue action.
JETBLUE OFFER TO BUY SPIRIT AIRLINES FOR ABOUT 3.6 BILLION DOLLARS IN CASH
Frontier also increased its reverse termination rate to Spirit by $ 100 million to $ 350 million.
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Spirit has repeatedly rejected JetBlue’s offer due to concerns about getting approval from U.S. regulators.
Reuters contributed to this report.