JANA Partners Sends Letter To Frontier Communications' Board; Calls For Frontier Board To Immediately Launch Comprehensive Review Of Strategic Alternatives
Portfolio Pulse from Benzinga Newsdesk
JANA Partners, a shareholder of Frontier Communications Parent, Inc. (NASDAQ:FYBR), has sent a letter to Frontier's Board urging an immediate review of strategic alternatives to maximize shareholder value. JANA believes Frontier is undervalued and faces structural impediments that prevent it from reaching its full potential as a public company. They suggest considering a sale, strategic partnership, or divestiture of non-core assets to transition to a pure-play fiber provider. JANA highlights Frontier's poor share price performance, lack of new investor interest post-bankruptcy, and underperformance compared to peers and the S&P 500.
December 04, 2023 | 8:48 pm
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JANA Partners is advocating for a strategic review of Frontier Communications, which could include a sale, partnership, or asset divestiture. This push for change is based on the belief that FYBR is undervalued and not reaching its potential, which may lead to significant corporate actions.
JANA Partners' letter to Frontier's Board is a strong signal to the market that significant changes may be on the horizon for FYBR. The advocacy for strategic alternatives often leads to increased investor interest and speculation about potential deals, which can drive up the stock price in the short term. The detailed critique of Frontier's current situation and the explicit call for action suggest that JANA is serious about inducing change, which could lead to a positive market reaction.
CONFIDENCE 80
IMPORTANCE 90
RELEVANCE 100