Ares Management (NYSE:ARES) LLC, a major stakeholder in Frontier Communications (OTC:FTRCQ) Parent, Inc. (NASDAQ:FYBR), has recently sold a significant portion of its holdings in the telecom company. The stock, which has seen a remarkable 32.6% surge over the past six months according to InvestingPro data, currently maintains a FAIR financial health rating. According to the latest SEC filings, Ares Management divested a total of 519,940 shares over two transactions on November 29 and December 2, 2024. The shares were sold at prices ranging from $34.7489 to $34.8045, amounting to a total transaction value of approximately $18.1 million. This transaction comes as InvestingPro analysis reveals the company operates with a significant debt burden, with total debt reaching $11.6 billion as of the latest quarter.
After these transactions, Ares Management holds 36,827,768 shares in Frontier Communications. These sales are part of a broader strategy by Ares Management, which is a ten percent owner of the company, to manage its investment portfolio. The transactions were carried out through various Ares-affiliated entities, including ACOF VI Frontier AIV A10, L.P. and ACOF VI Frontier AIV B1, L.P., among others. For deeper insights into FYBR's financial health and detailed analysis, investors can access comprehensive research reports and additional ProTips through InvestingPro.
In other recent news, shareholders of Frontier Communications have approved a merger agreement with Verizon Communications (NYSE:VZ), a notable development in the telecommunications sector. This decision was made after Frontier disclosed a 2% revenue increase in Q2 2024, achieving $1.48 billion, and a 5% growth in EBITDA. However, Frontier was met with a stock downgrade from Raymond (NS:RYMD) James due to concerns surrounding the shareholder vote. Opposition from Carronade Capital and Cooper Investors, who believe that Verizon's offer undervalues Frontier, was also reported.
Furthermore, Frontier secured seven ConneCTed Communities grants and over $23 million in grants to expand high-speed fiber broadband service in Connecticut, San Bernardino, and Riverside counties. On the other hand, Verizon Communications maintained a Buy rating from TD Cowen following its third-quarter results. These events underscore the recent developments in the companies' operations.
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