The consulting company Institutional Shareholders Services Inc. has changed its mind regarding a merger in response to Frontier Group’s most recent bid for Spirit Airlines. Spirit Airlines are being urged by ISS to support a merger with Frontier’s parent firm.The advising company urged Spirit Shareholders to reject Frontier’s proposal, arguing that JetBlue’s counteroffer of $30 per share is more advantageous financially. Frontier and JetBlue Airways Corp. have been in a bidding war for Spirit since early April.
Overall, it is justified to approve the merger with Frontier under the modified circumstances. Spirit Airlines encouraged its Shareholders to support a merger with Frontier at a meeting next week and announced on Friday that it was increasing its cash offer by $2 per share. Earlier this month, JetBlue increased the value of its bid for Spirit by $2 to $33.50 per share in cash. On June 30, Spirit Shareholders will vote on whether to combine with Frontier.
In a statement, JetBlue CEO Robin Hayes stated, “Customers shouldn’t have to choose between a low ticket and a wonderful experience, and JetBlue has demonstrated it’s feasible to have both.””The merger of JetBlue and Spirit — together with the tremendous advantages of our Northeast Alliance with American Airlines — would be a game changer in our capacity to provide superior value on a national scale to passengers, crewmembers, communities, and Shareholders,” said American Airlines.