Frontier Comm holder Glendon Capital calls for vote on Verizon deal to be delayed

Frontier Communications (NASDAQ:FYBR) holder Glendon Capital Management is calling for the special meeting on the firm’s planned sale to Verizon (VZ) to be delayed, as he believes the deal undervalues the firm.

Glendon plans to vote against the deal and believes that Frontier’s enterprise value is at least $26 billion, 30% higher than the current $20 billion value ascribed from the Verizon deal, the fund wrote in a letter to Frontier’s board on Wednesday.

“With the current voting deadline on November 13, shareholders are being deprived of this critical opportunity to understand the standalone case for the Company,” Glendon Partner Holly Kim Olson wrote in the letter. “We find these decisions to be disenfranchising to shareholders.”

The Glendon comments come after Reuters reported last month that Glendon, Frontier’s second-largest shareholder with a 10% stake, plans to vote against its sale to Verizon (VZ). Glendon plans to oppose the sale, as it believes Verizon’s $38.50 a share offer for Frontier is too low.

“Absent a price that appropriately reflects the value of Frontier’s assets and the Company’s earnings trajectory—and an extension of the record date and date of the special meeting of stockholders— we intend to vote our shares against” the Verizon (VZ) deal, Glendon’s Olson added in the letter.