Verizon’s $20 billion acquisition of Frontier Communications is facing strong resistance. Another major shareholder, Glendon Capital Management, confirmed it will reject the deal. Glendon owns around 10% of Frontier’s shares and believes Verizon’s offer undervalues the company.
In a letter to Frontier’s board, Glendon stated that Frontier’s enterprise value is at least $26 billion. This is 30% higher than Verizon’s current offer of $38.50 per share. “At the current price, Verizon is getting Frontier at a bargain,” the letter argued. The firm urged the board to renegotiate for a better deal, one that reflects Frontier’s real worth and growth potential. Glendon also criticized the “rushed” scheduling of a shareholder meeting on November 13 and called for more time for evaluation.
Glendon isn’t the only investor pushing back. Cooper Investors Pty Limited, an Australian firm, also opposes the deal. Cooper claims Verizon’s offer undervalues Frontier by up to 62%. Cerberus, which owns 7.3% of Frontier, has also expressed its intention to reject the offer.
Verizon remains firm, emphasizing that the acquisition will expand its fiber network and boost digital innovations like AI and IoT. Frontier serves 7.2 million locations across 25 states and has 2.2 million fiber customers. Verizon plans to integrate these assets into its Fios network.
As the November meeting approaches, pressure builds on Frontier’s board to secure a better deal or risk losing investor support.
