Cerberus Capital Management, a New York-based alternative investment firm, has secured the position of the second-largest shareholder in Frontier Communications, holding a 10% stake in the telecommunications company.
Reuters reports that the investor, by transitioning from a 13G to a 13D 'Statement of Beneficial Ownership', has conveyed its intention to actively pursue change or influence control at Frontier.
Cerberus outlined in its SEC filing that it is currently "engaged in, and may in the future engage in, discussions with members of the company’s Board and members of the company’s management team regarding constructive ways to enhance and maximize value for all stockholders." Meanwhile, Ares Management, based in Los Angeles and the current largest shareholder in Frontier with a 16% stake, also expresses aspirations to instigate change within the telecommunications company.
These developments follow closely after activist investor Jana Partners confirmed its position in Frontier, advocating for the company’s management to explore the possibility of putting the telecom entity up for sale.
In the past month, Frontier's stock price has surged over 20%, reflecting heightened speculation about the company's future.