ISS still in favour of Frontier

Institutional Shareholder Services (ISS) said JetBlue Airways’ latest offer to buy Spirit Airlines is “more favourable” for the ultra-lowcost airline’s shareholders, but maintained its support for the Frontier Airlines deal.

Spirit on Tuesday again cited antitrust concerns to reject JetBlue’s sweetened offer and asked its shareholders to vote for a merger with Frontier at today’s meeting.

The influential proxy advisory firm in a report dated Monday said it was hesitant to change its earlier stand recommending shareholders to vote for Frontier’s offer.

“The addition of the ticking fee in the JetBlue offer — a provision without a counterpart in the Frontier offer — provides a further level of regulatory risk mitigation,” ISS said.

JetBlue’s ticking fee would give Spirit shareholders a monthly prepayment of 10 cents per share between January 2023 and the closing of the deal.

ISS in a report published on Friday had urged shareholders of Spirit to vote for a proposed merger with Frontier, after it boosted its offer for the airline.

Both JetBlue and Bill Franke-backed Frontier are locked in an intense bidding war for Spirit as they seek to create the fifthlargest airline in the United States that can take on the legacy players.