Glendon Capital Rejects Verizon-Frontier Deal

Merger Agreement Terminated

Glendon Capital Management, LLC, a major shareholder of Frontier Communications Corporation (NASDAQ:FTR), announced today that it has rejected the proposed merger agreement between Frontier and Verizon Communications Inc. (NYSE:VZ). Glendon Capital owns approximately 13% of Frontier's outstanding shares.

Reasons for Rejection

In a statement, Glendon Capital cited several reasons for its decision to reject the deal. The firm believes that the merger would not be in the best interests of Frontier shareholders, as it would result in significant dilution of their ownership stake. Additionally, Glendon Capital expressed concerns about the financial impact of the merger on Frontier's balance sheet.

The firm also raised concerns about the regulatory approval process for the merger, which it believes could be lengthy and uncertain. Glendon Capital stated that it is "not convinced that the merger will ultimately be approved by the relevant regulatory authorities."

Glendon Capital's rejection of the merger agreement is a significant development, as it could potentially derail the deal. The firm's decision is likely to put pressure on Frontier and Verizon to reconsider the terms of the merger or to abandon it altogether.