Shareholders Challenge Verizon's Frontier Acquisition

Verizon Communications is facing significant opposition from major shareholders of Frontier Communications regarding its proposed $9.6 billion acquisition, which includes a $38.50 per share offer deemed significantly undervalued. Glendon Capital Management, Frontier's second-largest shareholder with nearly 10% of the company, plans to vote against the deal at the upcoming shareholder meeting on November 13, alongside concerns expressed by Cerberus Capital Management, which holds 7.3%. Analysts suggest that Verizon could afford to pay up to $67 per share, reflecting concerns about the true value of Frontier, which serves 2.2 million fiber subscribers. The $20 billion deal, including debt, was initially seen as a strategic move to enhance Verizon’s market competitiveness, but resistance from shareholders complicates its approval. Frontier's stock currently trades below the proposed deal price, raising further doubts about the acquisition's feasibility. This shareholder pushback highlights broader concerns about Verizon's valuation strategy in a competitive broadband market.