August 12, 2022

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Spirit shareholders urged to vote for Frontier's domestic offering

Spirit shareholders urged to vote for Frontier’s domestic offering

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.

Airlines

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.

Jetblo ups for the soul

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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