Glendon Capital Management Sends Letter to Frontier Communications Board of Directors Opposing Sale to Verizon for $38.50 Per Share
Glendon Capital Management, owning nearly 10% of Frontier Communications (NASDAQ: FYBR), has announced its opposition to the proposed Verizon acquisition of Frontier at $38.50 per share. Glendon believes Frontier's enterprise value is at least $26 billion, which is 30% higher than the $20 billion enterprise value offered in the Verizon transaction. The investment firm criticizes the Board's valuation methodology, citing flawed DCF and peer analysis. Glendon is requesting an extension of the record date and special meeting of stockholders to allow shareholders more time to evaluate Frontier's standalone potential.
Glendon Capital Management, che possiede quasi il 10% di Frontier Communications (NASDAQ: FYBR), ha annunciato la sua opposizione all'acquisizione proposta da Verizon di Frontier a 38,50 dollari per azione. Glendon ritiene che il valore d'impresa di Frontier sia di almeno 26 miliardi di dollari, il che rappresenta un incremento del 30% rispetto al valore d'impresa di 20 miliardi di dollari offerto nella transazione con Verizon. La società d'investimento critica la metodologia di valutazione del Consiglio, citando un'analisi DCF e peer flawed. Glendon sta richiedendo un'estensione della data di registrazione e una riunione straordinaria degli azionisti per consentire agli azionisti più tempo per valutare il potenziale autonomo di Frontier.
Glendon Capital Management, que posee casi el 10% de Frontier Communications (NASDAQ: FYBR), ha anunciado su oposición a la propuesta de adquisición de Frontier por parte de Verizon a 38,50 dólares por acción. Glendon cree que el valor empresarial de Frontier es de al menos 26 mil millones de dólares, lo cual es un 30% más que el valor empresarial de 20 mil millones de dólares ofrecido en la transacción con Verizon. La firma de inversión critica la metodología de valoración de la Junta, citando un análisis DCF y de pares defectuoso. Glendon está solicitando una extensión de la fecha de registro y una reunión especial de los accionistas para darles más tiempo a los accionistas para evaluar el potencial independiente de Frontier.
글렌돈 캐피탈 매니지먼트는 프론티어 커뮤니케이션스(NASDAQ: FYBR)의 거의 10%를 소유하고 있으며, 버라이즌이 주당 38.50달러에 프론티어를 인수하려는 제안에 반대한다고 발표했습니다. 글렌돈은 프론티어의 기업 가치는 최소 260억 달러이며, 이는 200억 달러로 제안된 버라이즌 거래보다 30% 높은 숫자라고 믿고 있습니다. 투자 회사는 이사회가 채택한 평가 방법론을 비판하며 결함이 있는 DCF 및 동료 분석을 언급했습니다. 글렌돈은 주주들이 프론티어의 독립 잠재력을 더 잘 평가할 수 있도록 기록일과 주주 특별 회의의 연장을 요청하고 있습니다.
Glendon Capital Management, qui possède près de 10 % de Frontier Communications (NASDAQ: FYBR), a annoncé son opposition à la proposition d'acquisition de Frontier par Verizon à 38,50 dollars par action. Glendon estime que la valeur d'entreprise de Frontier est d'au moins 26 milliards de dollars, ce qui représente une augmentation de 30 % par rapport à la valeur d'entreprise de 20 milliards de dollars proposée dans la transaction avec Verizon. La société d'investissement critique la méthodologie d'évaluation du conseil d'administration, évoquant une analyse DCF et des pairs défectueuse. Glendon demande une extension de la date d'enregistrement et une réunion spéciale des actionnaires pour donner aux actionnaires plus de temps pour évaluer le potentiel autonome de Frontier.
Glendon Capital Management, das fast 10% von Frontier Communications (NASDAQ: FYBR) besitzt, hat seine Opposition gegen den vorgeschlagenen Übernahme von Frontier durch Verizon zu 38,50 Dollar pro Aktie angekündigt. Glendon glaubt, dass der Unternehmenswert von Frontier mindestens 26 Milliarden Dollar beträgt, was 30% höher ist als der Unternehmenswert von 20 Milliarden Dollar, der im Verizon-Geschäft angeboten wird. Das Investmentunternehmen kritisiert die Bewertungsmethodik des Vorstands und verweist auf fehlerhafte DCF- und Peer-Analysen. Glendon beantragt eine Fristverlängerung für das Aufnahme Datum und eine außerordentliche Aktionärsversammlung, um den Aktionären mehr Zeit zu geben, das eigenständige Potenzial von Frontier zu bewerten.
- Glendon's analysis suggests company's true enterprise value is $26 billion, 30% above current offer
- Strong shareholder backing with Glendon owning nearly 10% of outstanding shares
- Current Verizon acquisition offer potentially undervalues company by 30%
- Board's rushed decision-making process and flawed valuation analysis
- Risk of shareholders accepting undervalued offer
Will Vote Against Verizon Transaction at Current Price as it Significantly Undervalues Frontier's Assets and Earnings Trajectory
Frontier's Board Relied on Fundamentally Flawed DCF and Peer Analysis
Believes Frontier's Enterprise Value is at Least
Urges Extension of Record Date and Date of Special Meeting of Stockholders
In the letter, Glendon expressed its belief that Frontier's enterprise value is at least
Additionally, Glendon expressed its disappointment with the Board's illogical and rushed setting of the record date and special meeting of stockholders, and urged an extension of both dates to enable shareholders to fully understand the standalone case for Frontier.
The full text of the letter can be accessed by clicking the following link: Letter to Frontier's Board.
Disclaimers
THIS IS NOT A SOLICITATION OF AUTHORITY TO VOTE YOUR PROXY. DO NOT SEND US YOUR PROXY CARD. GLENDON CAPITAL MANAGEMENT IS NOT ASKING FOR YOUR PROXY CARD AND WILL NOT ACCEPT PROXY CARDS IF SENT. GLENDON CAPITAL MANAGEMENT IS NOT ABLE TO VOTE YOUR PROXY, NOR DOES THIS COMMUNICATION CONTEMPLATE SUCH AN EVENT.
This letter does not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein in any state to any person. This letter does not recommend the purchase or sale of a security. There is no assurance or guarantee with respect to the prices at which any securities of Frontier Communications Parent, Inc. (the "Company") will trade, and such securities may not trade at prices that may be implied herein. In addition, this letter and the discussions and opinions herein are for general information only, and are not intended to provide financial, legal or investment advice. Each shareholder of the Company should independently evaluate the proxy materials and make a decision that aligns with their own financial interests, consulting with their own advisers, as necessary.
This letter contains forward-looking statements. Forward-looking statements are statements that are not historical facts and may include projections and estimates and their underlying assumptions, statements regarding plans, objectives, intentions and expectations with respect to future financial results, events, operations, services, product development and potential, and statements regarding future performance. Forward-looking statements are generally identified by the words "expects", "anticipates", "believes", "intends", "estimates", "plans", "will be" and similar expressions. Although Glendon Capital ("Glendon ") believes that the expectations reflected in forward-looking statements contained herein are reasonable, investors are cautioned that forward-looking information and statements are subject to various risks and uncertainties—many of which are difficult to predict and are generally beyond the control of Glendon or the Company—that could cause actual results and developments to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. In addition, the foregoing considerations and any other publicly stated risks and uncertainties should be read in conjunction with the risks and cautionary statements discussed or identified in the Company's public filings with the
Glendon's fund currently beneficially owns shares of the Company. This fund is in the business of trading (i.e., buying and selling) securities and intends to continue trading in the securities of the Company. You should assume this fund will from time to time sell all or a portion of its holdings of the Company in open market transactions or otherwise, buy additional shares (in open market or privately negotiated transactions or otherwise), or trade in options, puts, calls, swaps or other derivative instruments relating to such shares. Consequently, Glendon's beneficial ownership of shares of, and/or economic interest in, the Company may vary over time depending on various factors, with or without regard to Glendon's views of the pending transaction involving the Company and Verizon Communications (the "Pending Transaction") or the Company's business, prospects, or valuation (including the market price of the Company's shares), including, without limitation, other investment opportunities available to Glendon, concentration of positions in the portfolios managed by Glendon, conditions in the securities markets, and general economic and industry conditions. Without limiting the generality of the foregoing, in the event of a change in the Company's share price on or following the date hereof, Glendon's funds may buy additional shares or sell all or a portion of its holdings of the Company (including, in each case, by trading in options, puts, calls, swaps, or other derivative instruments relating to the Company's shares). Glendon also reserves the right to change the opinions expressed herein and its intentions with respect to its investment in the Company, and to take any actions with respect to its investment in the Company as it may deem appropriate, and disclaims any obligation to notify the market or any other party of any such changes or actions, except as required by law.
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SOURCE Glendon Capital Management LP
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