Frontier’s biggest holder hires adviser to evaluate sale to Verizon – Bloomberg

Frontier Communications’ (NASDAQ:FYBR) largest shareholder, Ares Management, hired an adviser as it evaluates the company’s $10 billion planned sale to Verizon (VZ).

Ares (ARES), an alternative investment firm which has a ~15% stake in Frontier, is deciding if it will support Verizon’s (VZ) $38.50 a share deal for Frontier (FYBR), according to a Bloomberg report on Wednesday, which cited people familiar with the matter. Ares hired Houlihan Lokey to advise it on the deal.

The news comes as some large Frontier (FYBR) holders have expressed their belief that the Verizon deal undervalues the company. Earlier Wednesday, Frontier holder Glendon Capital Management said it’s calling for the special meeting on the firm’s planned sale to Verizon (VZ) be delayed. Glendon plans to vote against the deal if the investor doesn’t see a better price and if the special meeting date isn’t changed.

The deal is currently set for a vote on Nov. 13.

On Monday, Frontier (FYBR) holder Carronade Capital Management, which said funds managed by Carronade own 2 million shares, said it plans to vote against the deal and believes that FYBR has an intrinsic value of at least $48.60 per share.