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Verizon stock closes up 3.28% on Wednesday despite market trading lower. Major Frontier Communications investor wants 30% more for acquisition. Verizon originally offered $20 billion for Frontier, a major fiber carrier in the US. Dow Jones sinks nearly 1% as market braces for high Fed rate environment post-election. Verizon (VZ) stock was the best performer in the Dow Jones Industrial Average (DJIA) on Wednesday. Shares of the telecom gained 3.28% to close at $42.86.  Verizon’s stock price gained when news broke that Glendon Capital, the largest shareholder of Frontier Communications (FYBR), would vote against Verizon’s acquisition price. The Dow Jones fell 0.96%, slightly worse than the S&P 500 but much better than the NASDAQ’s 1.60% slide. The market appears to be taking a breather ahead of the presidential election in less than two weeks as many expect a Donald Trump win to mean higher inflation and interest rates. Higher Treasury rates for longer might make US equities less enticing.  Verizon stock news It all boils down to hedge fund Glendon Capital deciding weeks after the proposal was first floated for Verizon to buy Frontier for $20 billion. Glendon says that the fiber assets owned by Frontier give the firm an enterprise value of $26 billion, about 30% above Verizon’s offer.  The market seemed to like this bit of news as traders don’t want the highly indebted Verizon to take on even more debt. At the end of September, Verizon had about $150 billion in total debt on its balance sheet. “With the current voting deadline on November 13, shareholders are being deprived of this critical opportunity to understand the standalone case for the Company,” Glendon partner Holly Kim Olson wrote in the letter Frontier management. “We find these decisions to be disenfranchising to shareholders.” Glendon is the second largest shareholder…

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Filed under: News - @ October 24, 2024 4:27 am