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.
Since early April, Spirit has been the subject of a bidding war between Frontier and JetBlue Airways Corp.
in balance, 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.
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 group holding||10.54||+0.65||+ 6.57%|
ISS said Frontier’s current offer matches the $2.00 increase in JetBlue’s bid price and also provides a higher upfront payment of $2.22 per share, compared to $1.50 per share of JetBlue.
Frontier also increased Spirit’s reverse termination fee by $100 million to $350 million.
Spirit has repeatedly rejected JetBlue’s bid over concerns about getting approval from US regulators.
Reuters contributed to this report.
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