Advisers tell Spirit shareholders to reject Frontier bid

A Frontier Airlines aircraft flying over Gloster City, N.J., approaches Philadelphia International Airport, Oct. 22, 2021. Spirit Airlines’ board still supports Frontier Airlines’ $2.9 billion takeover bid for the airline, saying it determined JetBlue’s competing $3.6 billion offer isn’t a superior proposal. Last month Spirit said that after speaking with financial and legal advisers, its directors believed JetBlue’s offer could “reasonably” turn out to be the better of the two deals. But on Monday, May 2, 2022 the company announced that it was determined that JetBlue’s offer “is not reasonably capable of being consummated.” (AP Photo/Matt Rourke)

NEW YORK (AP) — Score one for JetBlue in the dogfight over who gets to buy Spirit Airlines. A firm that advises investors on proxy voting said Tuesday that Spirit shareholders should oppose Frontier Airlines’ bid to buy Spirit, saying that JetBlue has made a better offer. Institutional Shareholder Services says both bids carry the risk of being rejected by regulators, but JetBlue offers a $200 million breakup fee if that happens, and Frontier does not. The advisory firm says Spirit shareholders should reject the Frontier offer to signal its board to negotiate further with JetBlue. Shareholders of Florida-based Spirit are scheduled to vote June 10 on whether to approve Frontier’s stock-and-cash offer.