Frontier (FYBR.US) plans to “sell” to Verizon (VZ.US) or is opposed by the second-largest shareholder

The Zhitong Finance App learned that according to reports, the second-largest shareholder of Frontier Communications (FYBR.US) plans to vote against the plan to sell the company to Verizon (VZ.US) for nearly $10 billion.

People familiar with the matter revealed that Glendon Capital Management, which holds nearly 10% of Frontier's shares, opposed the deal because it thought Verizon's price of $38.5 per share for Frontier was too low. According to reports, with the debt after the acquisition, the value of this deal will reach 20 billion US dollars.

People familiar with the matter said that the investor plans to vote against the shareholders' meeting on November 13. The deal requires an affirmative vote from the majority of tradable shareholders to be approved.

Verizon and Frontier did not immediately respond to media requests for comment.

In February of this year, Frontier said it was implementing a formal strategic assessment process. Earlier, activist investor Jana Partners called for an immediate strategic evaluation and possible sale of the company. Jana believes Frontier's undervaluation, combined with its strong position in fiber broadband, will make the company attractive to wireless operators and private equity firms.

Frontier shares closed at $35.25 on Monday, $3 below the proposed trading price.