ISS urges Spirit shareholders to vote for Frontier offer

Spirit is the subject of a bidding war between Frontier and JetBlue Airways Corp

Proxy advisory firm Institutional Shareholder Services Inc (ISS) has urged shareholders of Spirit Airlines Inc to vote for a proposed merger with Frontier Group Holdings Inc, Qazet.az reports.

"On balance, support for the merger with Frontier on the revised terms is warranted," the proxy advisory firm said in a report published late Friday and made public on Saturday.

Spirit shareholders are due to vote on the merger deal with Frontier on June 30.

ISS also said the current offer from Frontier appears preferable as it matches the $2.00 increase in JetBlue's offer price and also provides a higher prepayment of $2.22 per share compared to $1.50 per share from JetBlue.

Denver-based Frontier also increased its reverse termination fee to Spirit by $100 million to $350 million.

Florida-based Spirit has repeatedly rejected JetBlue's offer, saying it has a low likelihood of winning approval from U.S. regulators.