Carronade urges Frontier shareholders to vote against sale to Verizon

Carronade Capital, which beneficially owns approximately 2,000,000 shares of Frontier Communications Parent (FYBR), released a letter to fellow Frontier shareholders, which read in part, “Carronade Capital Management is a registered investment manager with approximately $2B in assets under management. Funds managed by Carronade beneficially own approximately 2,000,000 shares of Frontier Communications Parent. Put plainly, we believe that the current offer by Verizon Communications (VZ), to acquire the Company at $38.50 per share, is insufficient compared to the intrinsic value of the Company. Based on our decades of investment experience and extensive research, we believe that Frontier has an intrinsic value of at least $48.60 per share on a standalone basis – and that is before a fair share of the unique synergy value this transaction brings to Verizon. The Proposed Transaction with Verizon does NOT represent fair value to Frontier shareholders. As such, Carronade does NOT support the Proposed Transaction in its current form and encourages our fellow shareholders to vote against the Proposed Transaction if you agree…In summary, we believe it is abundantly clear that Frontier shareholders are not being offered a fair value at the Proposed Transaction price of $38.50 per share. We agree with Verizon management, that with the combination of Frontier and Verizon, Verizon gets scale and reach in a way that no other acquisition offers. We also agree that the synergies are not only very significant and real, that they are likely considerably understated, and that there are numerous benefits to the existing wireless business and significant revenue growth levers to pull that come only with a transaction with Frontier. Frontier shareholders are being rushed to approve the Proposed Transaction. For all of the reasons above, we intend to vote against the Proposed Transaction on its current terms. We believe all shareholders should vote no, until we can get a fair share of the value created from the combined enterprise.”