Reports indicate that Frontier Communications' (FYBR, Financial) second-largest shareholder plans to vote against the proposal to sell the company to Verizon (VZ) for nearly $10 billion. Glendon Capital Management, which holds nearly 10% of Frontier's shares, argues that Verizon's offer of $38.5 per share undervalues the company.
The deal, including assumed debt, would be worth $20 billion. The shareholder plans to cast a dissenting vote during the upcoming shareholder meeting. Approval of the deal requires a majority vote from outstanding shareholders.
Earlier this year, Frontier announced a strategic review after pressure from activist investor Jana Partners (Trades, Portfolio), who suggested that the company's strong position in the fiber broadband sector makes it appealing to wireless carriers and private equity firms.
Frontier shares closed at $35.25, about $3 less than the proposed transaction price.
