Spirit on Wednesday delayed the shareholder vote on its merger with Frontier Group for the fourth time amid a struggle to gather enough support for a deal that could create the fifth-largest US airline
Proxy advisory firm Institutional Shareholder Services (ISS) on Friday recommended Spirit Airlines Inc (NYSE: SAVE) shareholders to vote against the proposed deal with Frontier Group Holdings Inc (NASDAQ: ULCC).
Spirit on Wednesday delayed the shareholder vote on its merger with Frontier Group for the fourth time amid a struggle to gather enough support for a deal that could create the fifth-largest US airline.
ISS reiterated its stance and said the sweetened offer from JetBlue was “favorable” for Spirit shareholders.
“The prevailing Frontier share price in the time since the transaction was announced does not appear to indicate confidence from market participants that a recovery is on the horizon,” ISS wrote in a report.
Spirit has been at the center of a heated takeover bid since it first announced a deal with Frontier in February.
Although JetBlue’s $3.7 billion offer is higher, Spirit has repeatedly touted Frontier’s bid, citing higher long-term benefits and fewer regulatory risks.
Spirit said it intends to push the special meeting to July 27 from July 15 after Frontier requested to defer the vote.
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