Frontier Communications Parent, Inc. (NASDAQ: FYBR) and Verizon Communications Inc. (NYSE: VZ) are under scrutiny as Johnson Fistel, LLP investigates their proposed merger. The focus is on whether Frontier's board breached fiduciary duties. Despite 63% of Frontier shareholders approving the merger, significant opposition exists among major shareholders, who argue the deal undervalues Frontier.
Cooper Investors PTY Limited, a major shareholder with 800,000 shares, criticizes the merger, suggesting Frontier's standalone value could be 24-62% higher than the offer price. They argue that the merger does not adequately compensate stockholders for potential synergies. A New Street Research analyst supports this view, indicating Verizon could pay at least $67 per share and still create value.
Meanwhile, Verizon's stock activity reflects market dynamics. On February 4, 2025, Malady Kyle, Executive Vice President and Group CEO of VZ Business, sold 6,590 shares at $39.70 each. This transaction, reported on Form 4, highlights insider activity amid merger discussions. The current price of VZ on the NYSE is $39.90, showing a slight decrease of 0.10%.
Verizon's stock has fluctuated between $39.57 and $40.11 during the day, with a 52-week high of $45.36 and a low of $37.59. The company's market capitalization is approximately $168 billion, with a trading volume of 13.1 million shares. These figures provide context for the ongoing merger debate and shareholder concerns.
