09:14 AM EDT, 10/23/2024 (MT Newswires) -- Frontier Communications Parent ( FYBR ) shareholder Glendon Capital Management said Wednesday it will vote against Frontier's proposed sale to Verizon (VZ) for $38.50 per share as the deal "substantially undervalues" the company.

In a letter to Frontier's board, Glendon, which holds nearly 10% of the company's shares, said it estimates Frontier's enterprise value to be at least $26 billion, compared to the $20 billion implied by Verizon's offer.

"While we are not opposed to a sale, we believe the proposed acquisition of Frontier by Verizon Communications Inc. ( VZ ) at a price of $38.50 per share substantially undervalues the company's existing assets and the future upside potential that rightfully belongs to Frontier shareholders," the investment manager said.

Glendon called for an extension of the record date and the Nov. 13 special shareholders' meeting, adding that investors need more time to evaluate Frontier's potential as a standalone entity.

Frontier Communications and Verizon did not immediately respond to requests for comment from MT Newswires.

Price: 35.72, Change: +0.17, Percent Change: +0.48