Verizon: The Frontier Acquisition Provides a Small Strategic Benefit at a Full Price
Verizon will acquire Frontier Communications in an all-cash transaction at $38.50 per share, valuing Frontier at $20 billion with the assumption of debt. We are relieved that Verizon didn’t use its shares, which we believe are undervalued, or pay a huge premium on top of the jump in Frontier’s shares on Sept. 4. We are leaving our Verizon fair value estimate at $53.