A JetBlue Airlines plane takes off near a Spirit Airlines plane at Fort Lauderdale-Hollywood International Airport on May 16, 2022 in Fort Lauderdale, Florida.
Joe Raedle | beautiful pictures
Authorized consulting firm Institutional Shareholder Services Company has called for shareholders of Spirit Airlines vote against the proposal to merge with Frontier Group Holdings.
JetBlue Airways IncIn a report Tuesday, the ISS said the competitive offer of $30 for a stock outperformed a major stock trade from Frontier.
The value of Frontier’s stock and cash offer per share of the discount carrier was $22.31 as of Tuesday.
“The (Spirit) board’s position that a Frontier merger has a safer route to regulatory approval is not supported by any guarantee of value to shareholders in the event of a merger. regulatory refusal,” the authorization consulting firm said in a report published Tuesday.
The CEO of Florida-based Spirit, Ted Christie, said last week that shareholders were unlikely to vote against the proposed merger with Frontier.
The advisory firm also said the board’s decision to waive the auction process was a cause for concern and shareholders could question the board’s failure to negotiate a reverse termination fee. back with Frontier due to potential legal risk, and JetBlue offered a $200 million termination fee.
In response to the ISS report, JetBlue said “the report highlights the flawed process that the Controversial Spirit Department followed, which only underscores the need for the Spirit Board to now come to the table and negotiate.”
