Verizon isn’t going to raise Frontier Communications bid: CNBC

Verizon (VZ) won’t raise its bid for Frontier Communications (NASDAQ:FYBR) even as some large shareholders have come out against the deal as it nears a shareholder vote next week. Frontier fell 1.4%.

“There is no way they are raising their bid,” CNBC’s David Faber said on the business network on Monday, citing people familiar with Verizon’s thinking. “They are going into the vote. They fully expect they are going to get it. They will go into this vote fully expecting they will prevail.”

The news comes after a report on Friday that influential proxy advisor ISS advised Frontier (FYBR) shareholders to abstain from voting on the proposed $10 billion sale of the company to Verizon. Shareholders are set to vote on the combination next Wednesday.

Some large Frontier (FYBR) holders have expressed their belief that the Verizon deal undervalues the company. Glendon Capital has said it plans to vote against the deal if the investor doesn’t see a better price and if the special meeting date isn’t changed. 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.

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