Ares Management (NYSE:ARES) LLC, a significant stakeholder in Frontier Communications (OTC:FTRCQ) Parent, Inc. (NASDAQ:FYBR), recently sold a substantial portion of its holdings in the telecommunications company. The transactions, which took place on December 3 and December 4, involved the sale of 830,000 shares of common stock at prices ranging from $34.519 to $34.5913 per share, totaling approximately $28.7 million. The sale comes amid FYBR's strong market performance, with the stock up over 30% in the past six months and showing a remarkable 54% return over the last year, according to InvestingPro data.
Following these transactions, Ares Management's indirect ownership of Frontier Communications stands at 35,997,768 shares. The sales were conducted through various investment vehicles managed by Ares, as detailed in the accompanying footnotes of the SEC filing. With a market capitalization of $8.6 billion and total debt of $11.6 billion, InvestingPro analysis reveals that FYBR operates with a significant debt burden. Discover more insights about FYBR's financial health and 8 additional key metrics in the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, Frontier Communications shareholders have approved a merger agreement with Verizon Communications (NYSE:VZ), marking a significant milestone in the consolidation of the telecommunications industry. This development comes after Frontier reported a 2% revenue increase in Q2 2024, reaching $1.48 billion, along with a 5% growth in EBITDA. However, the stock was downgraded by Raymond (NS:RYMD) James due to concerns about the shareholder vote. This downgrade occurred amidst opposition from Carronade Capital and Cooper Investors, who argue that Verizon's offer undervalues Frontier. Frontier was also awarded seven ConneCTed Communities grants and secured over $23 million in grants to expand high-speed fiber broadband service in specific counties. On the other hand, Verizon Communications maintained a Buy rating from TD (TSX:TD) Cowen following their third-quarter results. These are recent developments in the companies mentioned.
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