Thursday, October 16, 2014

Corvex Tells CCI to Hold Off on Verizon Tower Buy

Corvex Management recently wrote a public letter to Crown Castle proposing to change the company’s capital allocation strategy to reduce cost of capital and improve valuation. The management firm told CCI they should put off possibly purchasing Verizon’s tower network for $6 billion until it changes its capital allocation to improve shareholder value. “We are optimistic that many of you share our view that Crown Castle is a great business with exceptional growth opportunities in the years ahead,” Keith Meister, managing partner at Corvex wrote. “However, we also believe many of you share our frustration over the company’s stock price underperformance relative to peers and the market over the past 18 months, and the company’s persistent market discount relative to its peers and its own intrinsic value.”  Continue reading here

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