Frontier Communications gains as holders approve Verizon deal

Update 10:23am: Adds Frontier confirmation.

Frontier Communications (NASDAQ:FYBR) rose 2% after its shareholders approved its planned $9.6 billion sale to Verizon (VZ). Verizon rose 1.3%.

Approximately 63% of stockholders voted for the deal, with ten of the company’s top 12 stockholders voting to approve the transaction, Frontier (FYBR) said in a statement on Wednesday.

Frontier (FYBR) holders approved the deal even after some large shareholders came out against the transaction and influential proxy firms ISS and Glass Lewis recommended that shareholders should abstain from voting.

“Today’s vote demonstrates the strong value of the fiber business we have built over the past four years and our ability to expand access to reliable connectivity for more Americans,” said Nick Jeffery, President and CEO, Frontier. “We look forward to closing this transaction by the first quarter of 2026 and beginning to deliver our premium fiber offering to millions more customers across our combined network.”

Frontier (FYBR) last Thursday said that if the deal is voted down by holders, the $38.50 a share deal may be terminated by either Verizon (VZ) or Frontier without penalty. If Frontier holders decline to approve the deal, Frontier will return to its standalone plan.

The WSJ earlier reported that Frontier (FYBR) had secured enough votes to approve the transaction.

Some large Frontier (FYBR) holders had expressed their belief that the Verizon (VZ) deal undervalues the company. Glendon Capital said it planned to vote against the deal/ Frontier (FYBR) holder, Carronade Capital Management, said it plans to vote against the deal and believes that FYBR has an intrinsic value of at least $48.60 per share.