Cooper Investors Issues Open Letter to Board of Directors of Frontier Communications Opposing Acquisition by Verizon
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.
Cooper Investors, un importante azionista di Frontier Communications (NASDAQ: FYBR), ha inviato una lettera aperta al consiglio di amministrazione di Frontier esprimendo una forte opposizione all'acquisizione proposta da Verizon al prezzo di 38,50 dollari per azione. Il gestore degli investimenti ritiene che questa offerta valuti significativamente al di sotto Frontier, affermando che:
1. Il valore autonomo di Frontier potrebbe essere fino al 62% superiore al prezzo offerto
2. Un valore di transazione equo sarebbe fino al 94% superiore all'offerta attuale
3. Rimanere un'azienda pubblica autonoma è l'esito ottimale per gli azionisti
Cooper Investors intende votare contro la transazione proposta nella prossima assemblea speciale del 13 novembre 2024 e invita anche gli altri azionisti a fare lo stesso.
Cooper Investors, un significativo accionista de Frontier Communications (NASDAQ: FYBR), ha emitido una carta abierta a la junta directiva de Frontier expresando su fuerte oposición a la adquisición propuesta por Verizon por 38,50 dólares por acción. El administrador de inversiones cree que esta oferta subestima significativamente a Frontier, afirmando que:
1. El valor autónomo de Frontier podría ser hasta un 62% mayor que el precio ofrecido
2. Un valor de transacción justo sería hasta un 94% mayor que la oferta actual
3. Permanecer como empresa pública independiente es el resultado óptimo para los accionistas
Cooper Investors tiene la intención de votar en contra de la transacción propuesta en la próxima reunión especial el 13 de noviembre de 2024, y urge a otros accionistas a hacer lo mismo.
주요 주주인 프론티어 통신 (NASDAQ: FYBR)인 쿠퍼 인베스터스가 버라이즌의 제안된 인수에 강력히 반대하는 공개 편지를 프론티어 이사회에 발송했습니다. 투자 관리자는 이 제안이 프론티어의 가치를 상당히 저평가하고 있다고 생각합니다, 그리고 다음과 같이 주장합니다:
1. 프론티어의 독립적인 가치는 제안 가격보다 최대 62% 더 높을 수 있습니다.
2. 공정 거래 가치는 현재 제안보다 최대 94% 더 높습니다.
3. 독립적인 상장 기업으로 남는 것이 주주에게 최적의 결과입니다.
쿠퍼 인베스터스는 오는 2024년 11월 13일 특별 회의에서 제안된 거래에 반대하는 투표를 할 것이며, 다른 주주들에게도 같은 행동을 취할 것을 요청합니다.
Cooper Investors, un actionnaire important de Frontier Communications (NASDAQ: FYBR), a adressé une lettre ouverte au conseil d'administration de Frontier pour exprimer une forte opposition à l'acquisition proposée par Verizon au prix de 38,50 $ par action. Le gestionnaire d'investissement estime que cette offre sous-estime significativement Frontier, affirmant que :
1. La valeur autonome de Frontier pourrait être jusqu'à 62 % supérieure au prix offert
2. Une valeur de transaction équitable serait jusqu'à 94 % supérieure à l'offre actuelle
3. Rester une entreprise publique autonome est le résultat optimal pour les actionnaires.
Cooper Investors a l'intention de voter contre la transaction proposée lors de la prochaine assemblée spéciale le 13 novembre 2024, et exhorte les autres actionnaires à faire de même.
Cooper Investors, ein bedeutender Aktionär von Frontier Communications (NASDAQ: FYBR), hat einen offenen Brief an den Vorstand von Frontier gerichtet, in dem er starke Opposition gegen den vorgeschlagenen Erwerb durch Verizon zum Preis von 38,50 Dollar pro Aktie äußert. Der Investmentmanager ist der Meinung, dass dieses Angebot Frontier erheblich unterbewertet und erklärt:
1. Der Standalone-Wert von Frontier könnte bis zu 62% über dem Angebotspreis liegen.
2. Ein fairer Transaktionswert wäre bis zu 94% höher als das aktuelle Angebot.
3. Der Erhalt als unabhängiges börsennotiertes Unternehmen ist das optimale Ergebnis für die Aktionäre.
Cooper Investors beabsichtigt, bei der bevorstehenden außerordentlichen Hauptversammlung am 13. November 2024 gegen die vorgeschlagene Transaktion zu stimmen und fordert auch andere Aktionäre auf, dasselbe zu tun.
- 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
- 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
Insights
The open letter from Cooper Investors opposing Frontier Communications' acquisition by Verizon is a significant development that could potentially derail the
This opposition from a major stockholder could lead to increased scrutiny of the deal and potentially force Verizon to reconsider its offer. If other significant shareholders align with Cooper Investors' view, it could jeopardize the transaction's approval at the upcoming special meeting on November 13, 2024. The market will likely react to this news, potentially driving up Frontier's stock price as investors speculate on a higher bid or the possibility of Frontier remaining independent.
Investors should closely monitor the situation for any responses from Frontier's board or Verizon, as well as reactions from other major shareholders. This development introduces uncertainty into the acquisition process and could lead to a protracted negotiation or even the termination of the deal, significantly impacting Frontier's short-term stock performance and long-term strategic direction.
Cooper Investors' opposition to the Verizon-Frontier deal highlights several critical aspects of M&A transactions. First, it underscores the importance of fair valuation in acquisitions, especially when significant synergies are expected. The claim that the offer fails to reflect the value of anticipated synergies is a common point of contention in such deals.
Second, this situation demonstrates the power of activist investors in influencing corporate actions. Cooper Investors' public stance could rally other shareholders, potentially forcing a renegotiation or derailment of the deal. This is particularly impactful given the upcoming shareholder vote on November 13, 2024.
Lastly, the assertion that Frontier remaining standalone is optimal for stockholders challenges the conventional wisdom that being acquired by a larger player is always beneficial. This perspective could resonate with other investors who believe in Frontier's long-term potential as an independent entity.
The outcome of this situation will likely have broader implications for the telecom sector, potentially influencing future M&A strategies and valuations in the industry.
Expresses Concern that
Believes Frontier's Standalone Value is up to
Confident Frontier Remaining as a Standalone Public Company is Optimal Outcome for Stockholders
Urges Frontier Stockholders to Vote AGAINST the Proposed Transaction
In the letter, Cooper Investors expressed its belief that the standalone value of Frontier is as much as
The full text of the letter can accessed at the following link: Letter to the Board
About Cooper Investors
Cooper Investors is an
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.
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SOURCE Cooper Investors
FAQ
What is Cooper Investors' stance on Verizon's proposed acquisition of Frontier Communications (FYBR)?
How much higher does Cooper Investors believe Frontier's (FYBR) standalone value is compared to Verizon's offer?
When is the special stockholder meeting for Frontier Communications (FYBR) regarding the Verizon acquisition?
What action is Cooper Investors urging Frontier Communications (FYBR) stockholders to take?
