Institutional Shareholder Services (ISS), a top proxy advisory firm, has advised shareholders of Frontier Communications to abstain from voting on Verizon’s takeover bid. This recommendation follows concerns over the strategic and financial implications of the acquisition.

Key Highlights:

• ISS's Position: ISS suggests abstaining due to insufficient clarity regarding how the acquisition will benefit Frontier's shareholders.
• Financial Implications: Some analysts speculate the merger may not yield anticipated returns for Frontier stakeholders in the long run.

ISS’s Concerns

ISS highlighted that abstention would signal to Verizon the need for a clearer value proposition and potentially encourage them to address shareholder concerns more comprehensively. ISS emphasized that further clarity on post-acquisition synergies and cost efficiencies is needed to support shareholder alignment.

Market Reactions and Next Steps

Market analysts are closely observing this development, as ISS’s recommendations carry significant weight in influencing shareholder votes. If Frontier shareholders abstain in large numbers, Verizon may need to reconsider aspects of its offer or provide additional incentives to secure shareholder backing.