Frontier accepts Verizon's $38.50 per share acquisition offer
- Verizon has proposed an all-cash offer of $38.50 per share for Frontier stockholders, reflecting a major premium over previous stock prices.
- The Board of Directors of Frontier Communications recommends acceptance of the offer after evaluating various strategic options and financial risks.
- This acquisition is seen as a favorable deal compared to Frontier's independent growth efforts, with the Board concluding it to be in the best interests of stockholders.
On October 7, 2024, Frontier Communications Parent, Inc. filed a definitive proxy statement with the SEC regarding the proposed acquisition by Verizon Communications Inc., highlighting Verizon's all-cash offer of $38.50 per share. This offer represents a significant premium over Frontier's recent stock prices, suggesting strong value for shareholders. The transaction was recommended by Frontier's Board of Directors after thorough evaluations by its Strategic Review Committee, which assessed various strategic options amidst a challenging market environment characterized by competition and negative cash flows. The Board firmly believes that this acquisition would provide greater security and potential upside compared to pursuing an independent growth strategy, taking into account the current debt levels and future funding needs. Shareholders are urged to review all pertinent documents related to the transaction due to potential risks that may impact the offer's completion, including regulatory approvals and competing bids, making it imperative for stockholders to stay informed about the circumstances surrounding the acquisition process.