To entice Spirit’s shareholders, Frontier (NASDAQ: ULCC) increased its offer by $2 per share in cash. To match JetBlue JBLU +5.77 percent (JBLUbid) it also announced it would pay $2.22 in advance per share and boosted its break-up cost to $350 million.
The board of directors of Spirit confirmed its unequivocal support for the merger deal with Frontier. Just a few days ago. As a result, JetBlue (JBLU) increased its all-cash offer for Spirit Airlines to $33.50 per share from its prior offer of $31.50 per share.
On Thursday, Spirit’s shareholders will vote on whether or not to approve the amended Frontier agreement at an extraordinary general meeting. Shareholders of Spirit were advised on Saturday by proxy advisory company Institutional Shareholder Services to support a merger with Frontier. Support for the merger with Frontier on improved conditions is merited, ISS stated in a study that was written late Friday and made public Saturday, according to analysts.
Spirit shares were down 5.4% at $23.19 a share before the market opened on Monday.