Frontier Communications’ shareholders have approved the $9.6 billion sale to Verizon despite some large investors seeking a higher price.
Verizon CEO Hans Vestberg described the acquisition as a strategic fit, helping Verizon compete more effectively in additional markets.
Verizon will pay $38.50 per share for Frontier and will absorb approximately $10 billion of Frontier’s debt, offering a 44 percent premium over Frontier’s 90-day average share price.
Some large shareholders raised concerns about the price, advocating for Verizon to pay more, and proxy firms advised investors to abstain from voting to consider alternatives.
The acquisition is expected to take 18 months to close.
For Verizon, this acquisition is aimed at strengthening competition against rivals AT&T and T-Mobile, which are increasingly focused on unlimited plans and bundling strategies.
The deal marks a strategic shift following Frontier’s engagement with activist investor Jana Partners, who had urged the company to consider a sale.