ISS warns firm Institutional Shareholder Services changed its stance on Spirit Airlines’ arranged restriction with Frontier Airlines on Friday, urging Spirit investors to vote against the arrangement and considering JetBlue Airways’ all-cash bid a “predominant alternative option,” an additional twist in the battle for the budget carrier.
ISS initially urged investors to vote against the Frontier cash-and-stock arrangement in May but altered its stance in late June after Frontier increased its offer to include a comparable separation expense to JetBlue’s.
Currently, ISS has deleted their recommendation relating to advertising unpredictability and energy costs, and this is what “may cause investors to conclude that the assurance of the value of the money idea is preferable to the anticipated potential benefit of the Frontier bargain.”
In a letter to his Spirit partner on Sunday, the CEO of Wilderness, Barry Biffle, referred to its most recent enhanced offer as “perfect and final” and expressed concern about the lack of investor support for this arrangement.
Glass Lewis advised investors to vote for the Frontier bargain last month.
Spirit has repeatedly postponed an investor vote on the Frontier-Spirit agreement, and this modification is the result. The voting is scheduled for July 27 at this time.
“We remain confident that Spirit investors will continue to recognise the clear preponderance of our proposal,” JetBlue explained on Friday, urging Spirit investors to reject the Frontier offer.
Soul declined to comment, while Frontier did not immediately respond. Friday saw a 2.4% increase in JetBlue’s share of the market, a 3.2% increase in Spirit’s share, and a 1.3% increase in Frontier’s share.
