Ares Management (NYSE:ARES) LLC, a significant shareholder of Frontier Communications (OTC:FTRCQ) Parent, Inc. (NASDAQ:FYBR), has sold a substantial portion of its holdings in the telecommunications company. The sale comes as FYBR's stock has surged approximately 35% over the past six months, despite carrying a substantial debt burden of $11.6 billion. According to InvestingPro data, the company currently maintains a market capitalization of $8.6 billion. According to a recent SEC filing, Ares Management executed two transactions on December 6 and December 9, selling a total of 575,000 shares of common stock. The shares were sold at prices ranging from $34.6148 to $34.6367 per share, generating a total of approximately $19.9 million.
Following these transactions, Ares Management and its affiliated entities still hold a significant position in Frontier Communications, with 35,422,768 shares remaining. The transactions were conducted indirectly, with ownership details outlined in the footnotes of the filing.
In other recent news, Frontier Communications' shareholders have overwhelmingly approved a merger with Verizon Communications (NYSE:VZ). This development follows Frontier's Q2 2024 report of a 2% revenue increase, reaching $1.48 billion, and a 5% growth in EBITDA. However, the company faced a stock downgrade from Raymond (NS:RYMD) James due to concerns about the shareholder vote.
The merger approval has faced opposition from investment firms Carronade Capital and Cooper Investors, who argue that Verizon's offer undervalues Frontier. Despite this, Frontier was awarded seven ConneCTed Communities grants and secured over $23 million in grants to expand high-speed fiber broadband service in Connecticut, San Bernardino, and Riverside counties.
Simultaneously, Verizon Communications maintained a Buy rating from TD (TSX:TD) Cowen following third-quarter results. These recent developments highlight the ongoing dynamics and strategic moves within the telecommunications industry.
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