ISS urges Spirit shareholders to vote against Frontier merger, outperforms JetBlue bid

Proxy advisory firm Institutional Shareholder Services reversed its stand on Friday Spirit Airlines‘ planned alliance with Frontier AirlinesSpirit shareholders urged to vote against deal and call JetBlue Airways‘ The all-cash bid is a “better option,” yet another turning point in the battle for the budget airline.

In May the ISS originally urged shareholders to vote against the Frontier cash-and-stock deal, then in late June Frontier agreed to sweeten its bid to include a matching reverse breakup fee from JetBlue. Later changed his recommendation.

Now the ISS has withdrawn its recommendation, citing market volatility, energy prices and bearish fears that “could lead shareholders to conclude that the certainty of the value of the cash return could be a possible reversal of the Frontier deal.” better for.”

Frontier CEO Barry Biffle on Sunday latest Sweet offer its”best and last“In a letter to its Spirit counterpart, and concerned about the lack of shareholder support for that deal.

Advisory firm Glass Lewis last month recommended shareholders vote in favor of the Frontier deal.

The change comes after repeated delays in the shareholder vote on the Frontier-Spirit deal, which Spirit has delayed four times. Now voting is to be held on July 27.

Spirit declined to comment, while JetBlue and Frontier did not immediately respond. Shares of JetBlue were up 3% in morning trading, while Frontier was up more than 1% and Spirit was up nearly 1%.