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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.
In May, ISS urged Spirit shareholders to vote for JetBlue Airways Corp (NASDAQ: JBLU).
ISS reiterated its stance and said the sweetened offer from JetBlue was “favorable” for Spirit shareholders.
Earlier this week, Frontier had declined to raise its $2.7 billion bid further.
“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.
Picture Credit: Airline Weekly
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