{"id":468232,"date":"2022-06-28T01:25:00","date_gmt":"2022-06-27T22:25:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/spirit-shareholders-should-vote-for-frontier-offer-proxy-adviser-recommends\/"},"modified":"2022-06-28T01:25:00","modified_gmt":"2022-06-27T22:25:00","slug":"spirit-shareholders-should-vote-for-frontier-offer-proxy-adviser-recommends","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/spirit-shareholders-should-vote-for-frontier-offer-proxy-adviser-recommends\/","title":{"rendered":"#: Spirit shareholders should vote for Frontier offer, proxy adviser recommends"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2f6370a8637\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2f6370a8637\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/spirit-shareholders-should-vote-for-frontier-offer-proxy-adviser-recommends\/#%E2%80%9C_Spirit_shareholders_should_vote_for_Frontier_offer_proxy_adviser_recommends%E2%80%9D\" >&#8220;: Spirit shareholders should vote for Frontier offer, proxy adviser recommends&#8221;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/spirit-shareholders-should-vote-for-frontier-offer-proxy-adviser-recommends\/#JetBlue_boosts_its_offer_for_Spirit_late_Monday\" >JetBlue boosts its offer for Spirit late Monday<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/spirit-shareholders-should-vote-for-frontier-offer-proxy-adviser-recommends\/#Claudia_Assis\" >Claudia Assis<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9C_Spirit_shareholders_should_vote_for_Frontier_offer_proxy_adviser_recommends%E2%80%9D\"><\/span>&#8220;: Spirit shareholders should vote for Frontier offer, proxy adviser recommends&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"JetBlue_boosts_its_offer_for_Spirit_late_Monday\"><\/span>\n  JetBlue boosts its offer for Spirit late Monday<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div class=\"article__side\">\n<div class=\"container--sticky not-active\">\n<div id=\"cx-next\" data-nosnippet>\n              <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000983147\" role=\"document\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div data-layout=\"\n                inline\" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetArticleReader\n              \n              inline\n  article__inset\n          article__inset--type-InsetArticleReader\n              article__inset--inline\n  \"><\/p>\n<div class=\"media-object-article-reader\">\n<div class=\"audioplayer\" data-sbid=\"WP-MKTW-0000983147\" role=\"region\" aria-label=\"Listen to Article\" tabindex=\"-1\" id=\"articlereader\" data-show-title=\"false\" data-theme=\"wsj-article-reader\" data-show-header=\"false\" data-show-subscribe=\"false\" data-ads-enabled=\"true\" data-save-publication=\"false\">\n        <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       Frontier Group Holdings Inc.\u2019s sweetened deal for Spirit Airlines Inc. got a nod from Institutional Shareholder Services Inc., one of the two largest independent services meant to advise investors on important shareholder votes. <\/p>\n<p> Frontier<br \/>\n        ULCC,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/211317788\/composite\" class=\"negative\">-11.20%<\/bg-quote><br \/>\n       late Friday increased its offer for Spirit<br \/>\n        SAVE,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/205782179\/composite\" class=\"negative\">-7.95%<\/bg-quote><span>,<\/span><br \/>\n       trying to fend off JetBlue Airways Corp.<br \/>\n        JBLU,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/207639051\/composite\" class=\"positive\">+1.62%<\/bg-quote><span>,<\/span><br \/>\n       which surprised investors in April with its own proposal for Spirit and also has put improved offers on the table. Frontier and Spirit announced their deal in February. <\/p>\n<div class=\"paywall\">\n       Late Monday, JetBlue boosted its offer as well, raising the fee it would have to pay Spirit if the deal wouldn\u2019t clear antitrust hurdles, to $400 million from $350 million, and hiked its prepayment offer to $2.50 a share, payable as a cash dividend to Spirit shareholders \u201cpromptly following\u201d a shareholder vote <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>roving a merger with JetBlue. JetBue also added a \u201cticking fee,\u201d a monthly prepayment of 10 cents a share between January 2023 and the closing or termination of the deal.<\/p>\n<p>Frontier and Spirit shares fell Monday, while shares of JetBlue were one of the few gainers amid a downdraft for the broader equity market. <\/p>\n<p>ISS had previously urged  Spirit shareholders to reject Frontier\u2019s offer. Glass Lewis, the other shareholder proxy service, has kept its recommendation in favor of the Frontier merger.  <\/p>\n<p>Frontier late Friday increased the per-share offer by $2 and raised the fee it would pay if the deal runs afoul antitrust matters to $350 million. That fee matched JetBlue\u2019s until JetBlue\u2019s action late Monday. <\/p>\n<p>Frontier is also offering 1.9126 of its shares per Spirit share, which would allow \u201cSpirit shareholders to benefit from the potential upside of the combined company and the expected $500 million of synergies,\u201d ISS said in its recent note.<\/p>\n<p>Frontier is also offering Spirit shareholders to prepay $2.22 a share in cash following merger approval, while JetBlue offered to prepay $2.50, an increase of $1 from JetBlue\u2019s previous offer.<\/p>\n<p>JetBlue\u2019s proposal \u201ccaps the potential upside for Spirit shareholders \u2013 if an agreement is struck at the currently proposed terms, Spirit shareholders could not receive more than $33.50 per share in cash, even if the value of the combined company\u2019s synergies prove to be higher,\u201d ISS said. <\/p>\n<p>In contrast, there\u2019s a potential upside of owning 48.5% of a combined Spirit and Frontier, which \u201ccould benefit from a recovery in the U.S. airline industry.\u201d <\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p>Spirit shares have traded above $33.50 from February to June and that could be seen as \u201can indicator of where standalone Spirit shares could trade in the event of an industry recovery,\u201d ISS said.<\/p>\n<p>Frontier\u2019s improved offer came as a surprise, analyst Savanthi Syth at Raymond James said in a note Monday. \u201cWe had believed the probability to be low that Frontier would improve its offer,\u201d Syth said. <\/p>\n<p>Frontier on Monday issued a letter to Spirit shareholders, urging them to support the deal and calling JetBlue\u2019s an \u201cillusory proposal, which lacks any realistic likelihood of obtaining regulatory approval.\u201d <\/p>\n<p>JetBlue said late Friday it continues to believe its offer is \u201cdecisively superior to the Frontier transaction, even considering its revised terms.\u201d <\/p>\n<p>On Monday, JetBlue said it had<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/otp.investis.com\/clients\/us\/jetblue_airways\/usn\/usnews-story.aspx?cid=981&amp;newsid=84050\" class=\"icon none\"> engaged with Spirit shareholders directly <\/a>and modified its proposal \u201cin response to shareholders\u2019 expressed interest.\u201d<\/p>\n<p>The special shareholder meeting is scheduled for Thursday. <\/p>\n<p>Shares of Spirit are up 3% this year, while Frontier shares are down 31% and JetBlue shares have lost 39% in the same period. That compares with losses of about 18% for the S&amp;P 500 index<br \/>\n        SPX,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210599714\/realtime\" class=\"negative\">-0.30%<\/bg-quote><br \/>\n       and 19% for the U.S. Global JETS ETF<br \/>\n        JETS,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/207744796\/composite\" class=\"negative\">-2.07%<\/bg-quote><span>.<\/span><\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>    <span>By<\/span><\/p>\n<div class=\"author mobile-scrim hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Claudia Assis\",\"subhead\":\"The Wall Street Journal\",\"list\":[{\"type\":\"link\",\"icon\":\"bio\",\"url\":\"https:\/\/www.marketwatch.com\/topics\/journalists\/claudia-assis\",\"text\":\"Biography\"},{\"type\":\"link\",\"icon\":\"twitter\",\"url\":\"https:\/\/twitter.com\/ClaudiaAssisMW\",\"text\":\"@ClaudiaAssisMW\"},{\"type\":\"link\",\"icon\":\"email\",\"url\":\"http:\/\/www.marketwatch.com\/news\/mailto:cassis@marketwatch.com\",\"text\":\"cassis@marketwatch.com\"}]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Claudia_Assis\"><\/span>Claudia Assis<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><ufc-follow-author-widget product=\"marketwatch\" author-id=\"40_MW\" author-name=\"Claudia Assis\" signin-url=\"https:\/\/accounts.marketwatch.com\/login?target=https%3A%2F%2Fwww.marketwatch.com%2Fstory%2Fspirit-shareholders-should-vote-for-frontier-offer-proxy-adviser-recommends-11656355179%3Frss%3D1%26siteid%3Drss\" panda-api=\"https:\/\/follow-api.marketwatch.com\"><\/ufc-follow-author-widget><\/p><\/div>\n<\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B20C05575-04D4-B545-7F00-6B11E7B75F26%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;: Spirit shareholders should vote for Frontier offer, proxy adviser recommends&#8221; JetBlue boosts its offer for Spirit late Monday Frontier Group Holdings Inc.\u2019s sweetened deal for Spirit Airlines Inc. got a nod from Institutional Shareholder Services Inc., one of the two largest independent services meant to advise investors on important shareholder votes. Frontier ULCC, -11.20%&#8230;<\/p>\n","protected":false},"author":1,"featured_media":468233,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.mktw.net\/im-572270\/social","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-468232","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/468232","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=468232"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/468232\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/468233"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=468232"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=468232"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=468232"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}