34.1 C
Abu Dhabi

ISS Urges Spirit Airlines Shareholders To Reject Frontier Merger

In a new turn in the bidding for the low-cost carrier, institutional shareholder services, a proxy advisory firm, on Friday recommended that Spirit Airlines shareholders reject the proposed merger with Frontier Airlines and referred to JetBlue Airways’ all-cash offer as a “better alternative.”

ISS initially advised shareholders to reject the Frontier cash-and-stock merger in May. However, after Frontier sweetened its offer by including a reverse breakup fee that matched JetBlue’s, ISS changed its advice in late June.

The market volatility, energy costs, and recession worries, according to ISS, “may lead shareholders to believe that the certainty of the value of the cash consideration is preferable to the potential upside of the Frontier purchase,” which is why ISS has since withdrawn its endorsement.

READ MORE: Food Shortage: Expert Urges Use Of Biotechnology

In a letter to his Spirit counterpart on Sunday, Frontier’s CEO, Barry Biffle, referred to the company’s most recent sweetened bid as its “best and final” offer and expressed concern about the lack of shareholder approval for the transaction.

Glass Lewis, a consulting firm, recommended last month that shareholders approve the Frontier acquisition.

The modification follows Spirit’s four previous postponements of a shareholder vote on the Frontier-Spirit merger. The election will now take place on July 27.

JetBlue again urged Spirit shareholders to reject the Frontier bid in a statement on Friday, saying, “We remain convinced that Spirit shareholders continue to overwhelmingly appreciate the evident superiority of our plan.”

Frontier remained silent while Spirit declined to comment. On Friday, JetBlue’s stock increased by 2.4 percent, Spirit’s by 3.2 percent, and Frontier’s by 1.3 percent.

JOIN OUR NEWSLETTER

- Advertisement -

Our newsletter gives you access to a curated selection of the most important stories daily.

- Advertisement -

Must Read

Uchara Faith
Faith is a valiant writer who has an undisputed passion for writing. She has worked with many highly reputable companies as content creator, radio presenter. She has a book to her name titled ECHO OF A DISTRESSED HEART. She's goal driven oriented person.

In a new turn in the bidding for the low-cost carrier, institutional shareholder services, a proxy advisory firm, on Friday recommended that Spirit Airlines shareholders reject the proposed merger with Frontier Airlines and referred to JetBlue Airways’ all-cash offer as a “better alternative.”

ISS initially advised shareholders to reject the Frontier cash-and-stock merger in May. However, after Frontier sweetened its offer by including a reverse breakup fee that matched JetBlue’s, ISS changed its advice in late June.

The market volatility, energy costs, and recession worries, according to ISS, “may lead shareholders to believe that the certainty of the value of the cash consideration is preferable to the potential upside of the Frontier purchase,” which is why ISS has since withdrawn its endorsement.

READ MORE: Food Shortage: Expert Urges Use Of Biotechnology

In a letter to his Spirit counterpart on Sunday, Frontier’s CEO, Barry Biffle, referred to the company’s most recent sweetened bid as its “best and final” offer and expressed concern about the lack of shareholder approval for the transaction.

Glass Lewis, a consulting firm, recommended last month that shareholders approve the Frontier acquisition.

The modification follows Spirit’s four previous postponements of a shareholder vote on the Frontier-Spirit merger. The election will now take place on July 27.

JetBlue again urged Spirit shareholders to reject the Frontier bid in a statement on Friday, saying, “We remain convinced that Spirit shareholders continue to overwhelmingly appreciate the evident superiority of our plan.”

Frontier remained silent while Spirit declined to comment. On Friday, JetBlue’s stock increased by 2.4 percent, Spirit’s by 3.2 percent, and Frontier’s by 1.3 percent.

JOIN OUR NEWSLETTER

Our newsletter gives you access to a curated selection of the most important stories daily.

Specially For You

- Advertisement -

Recommended

- Advertisement -
- Advertisement -