Jana Partners sets its sights on Frontier telecom

By Claudia Assis

Activist investor Jana calls for possible sale, review at Frontier Communications

Activist investor Jana Partners on Monday called Frontier Communications Parent Inc. to explore a possible sale and conduct an strategic review in order to reverse its "poor" stock performance.

Frontier (FYBR) "has failed its shareholders as a public company," Jana said in a statement. Shares of Frontier rallied more than 5% on Monday.

"Frontier's equity is grossly undervalued and that it will continue to underperform if the board maintains the status quo," Jana said in the statement.

The board should "immediately" start an strategic review to create shareholder value, including a possible sale, the investment firm said.

Another avenue would be the creation of a joint venture and the sale of non-core assets "to accelerate Frontier's transition to a pure-play fiber provider," Jana said.

Frontier Communications did not immediately return a request for comment. The company in early November swung to a surprise adjusted quarterly profit and reported earnings in line with Wall Street's expectations.

The stock has lost 7%, however, in the year to date, contrasting with gains of around 19% for the S&P 500 index SPX.

-Claudia Assis

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12-04-23 1606ET

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