Cooper Investors Issues Open Letter to Board of Directors of Frontier Communications Opposing Acquisition by Verizon

Rhea-AI Summary

Cooper Investors, a significant stockholder of Frontier Communications (NASDAQ: FYBR), has issued an open letter to Frontier's board of directors expressing strong opposition to the proposed acquisition by Verizon for $38.50 per share. The investment manager believes this offer significantly undervalues Frontier, stating that:

1. Frontier's standalone value could be up to 62% higher than the offer price
2. A fair transaction value would be up to 94% higher than the current offer
3. Remaining a standalone public company is the optimal outcome for stockholders

Cooper Investors intends to vote against the proposed transaction at the upcoming special meeting on November 13, 2024, and urges other stockholders to do the same.

Positive

• Cooper Investors believes Frontier's standalone value is significantly higher than the offer price
• The investment manager suggests Frontier remaining independent is the best outcome for stockholders

Negative

• Verizon's offer of $38.50 per share is considered to significantly undervalue Frontier
• The proposed acquisition faces opposition from a significant stockholder
• There's a risk the acquisition may not be approved at the special stockholder meeting

Expresses Concern that $38.50 Offer Price Significantly Undervalues Frontier and Fails to Reflect Value of Anticipated Synergies

Believes Frontier's Standalone Value is up to 62% Higher than Offer Price and Fair Transaction Value Would be up to 94% Higher than Offer Price

Confident Frontier Remaining as a Standalone Public Company is Optimal Outcome for Stockholders

Urges Frontier Stockholders to Vote AGAINST the Proposed Transaction

MELBOURNE, Australia, Oct. 15, 2024 /PRNewswire/ -- Cooper Investors Pty Limited (together with its affiliates, "Cooper Investors"), an Australia-based global investment manager and significant stockholder of Frontier Communications Parent, Inc. (NASDAQ: FYBR) ("Frontier" or the "Company"), today issued an open letter to the board of directors of Frontier in which it expressed its strong opposition to the acquisition of Frontier by Verizon Communications Inc. for $38.50 per share (the "Proposed Transaction").

In the letter, Cooper Investors expressed its belief that the standalone value of Frontier is as much as 62% higher than Verizon's offer price and that the fair transaction value would be up to 94% higher. Cooper Investors stated its intention to vote against approval of the Proposed Transaction and encouraged its fellow stockholders to do the same at the Company's upcoming special meeting of stockholders scheduled to be held on November 13, 2024.

The full text of the letter can accessed at the following link: Letter to the Board

About Cooper Investors

Cooper Investors is an Australia-based, employee-owned and operated global investment manager founded in 2001. The firm manages approximately $7 billion on behalf of families, charities, foundations, endowments and institutions.

THIS IS NOT A SOLICITATION OF AUTHORITY TO VOTE YOUR PROXY. DO NOT SEND US YOUR PROXY CARD. COOPER INVESTORS IS NOT ASKING FOR YOUR PROXY CARD AND WILL NOT ACCEPT PROXY CARDS IF SENT. COOPER INVESTORS IS NOT ABLE TO VOTE YOUR PROXY, NOR DOES THIS COMMUNICATION CONTEMPLATE SUCH AN EVENT.

View original content:https://www.prnewswire.com/news-releases/cooper-investors-issues-open-letter-to-board-of-directors-of-frontier-communications-opposing-acquisition-by-verizon-302276473.html

SOURCE Cooper Investors

FAQ

What is Cooper Investors' stance on Verizon's proposed acquisition of Frontier Communications (FYBR)?

Cooper Investors strongly opposes Verizon's proposed acquisition of Frontier Communications (FYBR), believing the $38.50 per share offer significantly undervalues the company.

How much higher does Cooper Investors believe Frontier's (FYBR) standalone value is compared to Verizon's offer?

Cooper Investors believes Frontier's (FYBR) standalone value could be up to 62% higher than Verizon's offer price of $38.50 per share.

When is the special stockholder meeting for Frontier Communications (FYBR) regarding the Verizon acquisition?

The special stockholder meeting for Frontier Communications (FYBR) regarding the Verizon acquisition is scheduled for November 13, 2024.

What action is Cooper Investors urging Frontier Communications (FYBR) stockholders to take?

Cooper Investors is urging Frontier Communications (FYBR) stockholders to vote AGAINST the proposed acquisition by Verizon at the upcoming special meeting.