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Verizon’s $20bn acquisition of Frontier Communications faces a nail-biting showdown at an investor meeting next week after some of the biggest shareholders in the fibre network company demanded at least a 30 per cent price increase.

Canada-based BCE’s proposed $3.6bn acquisition of Ziply this week — a telco with a fibre network similar to that of Frontier — has become a flashpoint.

The Frontier investors have told Verizon and the Frontier board that the valuation metrics in the Ziply deal imply a far higher purchase price for Frontier, citing the long-term growth prospects for fibre broadband service.

According to an analysis prepared by Frontier’s shareholders, the company’s projected growth makes its shares worth more than $50 a share, far higher than the deal price of $38.50.

Glendon Capital Management and Cerberus Capital Management, which combined own about 17 per cent of Frontier shares, are among the investors angling for a higher deal price, said multiple people familiar with the matter.

Ares Management, the company’s single largest shareholder with about a 15 per cent stake, has not indicated which way it plans to vote, said people familiar with the matter. It has hired boutique bank Houlihan Lokey to evaluate its options.

Verizon’s offer in early September represented a 44 per cent premium over Frontier’s trading range at the time. The company has said its offer is fair and it does not plan to raise the price. But the acquisition is also central to the company’s strategy of expanding its fibre internet capabilities, which shareholders view as a sign it will not let the buyout collapse.

Frontier has said that if shareholders reject the deal terms, the company will return to its strategy as a standalone business. The company’s share price was about $34 on Friday. Some analysts are sceptical of the shareholders’ lofty Frontier valuation.

“Frontier’s shareholders’ choice is really between $38.50 per share in cash or a go-it-alone future with the risks and opportunities that journey presents,” Nick Del Deo, a managing director at MoffettNathanson, wrote in a note on Wednesday.

Verizon and Frontier declined to comment.

The proposed deal suffered additional blows in recent days, after the closely watched proxy advisers Institutional Shareholder Services (ISS) and Glass Lewis directed investors to abstain from voting next week, which in effect counts as rejecting the $38.50 price.

“Given the possibility of substantially more value down the line, and the lack of urgency to approve a transaction that is not projected to close for more than a year, it seems reasonable for shareholders to exercise the optionality of abstaining for the time being,” ISS said in its report on November 1.

Frontier filed for bankruptcy protection in 2020 after the acquisition of a regional telecoms business resulted in an unsustainable debt load. It emerged from bankruptcy in 2021, in which it transferred equity control to its bondholders, allowing it to shed billions of dollars of liabilities. Shortly after, it relisted on the stock market.

Some of the company’s biggest shareholders — including Ares, Cerberus and Glendon — have been with the company since bankruptcy. The investors were some of the group’s biggest noteholders, with Cerberus owning more than $500mn of its debt, according to court filings.

The activist hedge fund Jana Partners successfully pushed Frontier into starting a sale process earlier this year, before the company’s management had initially planned.

Recent deals between Verizon’s rivals have upped the competition in the sector, with T-Mobile earlier this year announcing joint ventures with private equity groups EQT and KKR to buy Lumos and Metronet, respectively.

Telco companies that historically relied on legacy copper wire businesses, such as Frontier, have been investing heavily in fibre networks to compete with cable broadband providers. While their traditional businesses have suffered in recent years, there is renewed interest in fibre internet buildouts as data loads explode with coming artificial intelligence applications.

“This is a true game of chicken,” said one person involved in the transaction.

Additional reporting by James Fontanella-Khan and Eric Platt in New York

YOU don’t need fancy kit to keep your screens clean.

With a bit of know-how, you can keep your gadgets sparkly and germ-free without splashing cash.

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Clean up with these ideas.

ON THE BUTTONS: TV remotes, gaming handsets, computer mice and keyboards all need a regular wipe.

For keyboards, turn your device off before tipping it upside down to dislodge and loose dirt.

Use a clean, soft make-up brush, paintbrush or toothbrush to dust over the keys, and then wipe gently with a screen wipe.

You can use a cotton bud to dust gently between the keys.

GOOD CALL: How often does your phone need cleaning?

A lot more often than you think.

With nearly half of us taking our phones into the bathroom, experts recommend a daily wipe-over to get rid of any germs.

You can use screen wipes, but they are not essential.

Instead, a dash of washing-up liquid in a bowl of water works wonders.

Dip in a soft microfibre cloth, then wring it out so it is just a little damp.

Turn off your phone, then wipe over the screen and casing avoiding any openings like charging and headphone ports.

Don’t forget to clean inside the case too.

Whatever you do, don’t put your phone in water.

Only the newest waterproof models — which will have an IP7 or IP68 rating — can withstand a dunking.

SCREEN SAVER: A smeary screen can ruin your enjoyment of the latest drama.

First off, try cleaning with a dry soft cloth.

Don’t use anything with a rough surface, or kitchen roll, which could scratch your screen.

Wipe gently in small circles, without pushing on the screen too much.

For stubborn stains, it’s recommended that you switch off your set before using a cloth that has been dampened with a little water.

Use another cloth to dry.

Use a similar method for a laptop screen.

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VIRGIN Atlantic has relaunched long-haul flights to a popular British holiday resort.

The new London Heathrow to Cancun flights will launch next winter, with three weekly flights.

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From October 19, 2025, Brits will be able to travel from the UK’s biggest airport to the Mexican destination – the only direct flight from Heathrow.

Virgin Atlantic cancelled the route back in 2019, so will be the first route in six years.

Other direct flights in the UK include London Gatwick to Cancun with British Airways and Birmingham to Cancun with TUI.

Juha Jarvinen, Chief Commercial Offer, Virgin Atlantic, said they were “delighted” to be offering Cancun flights again for winter sun.

They added: “Cancun has an amazing nightlife and dining scene, dreamy sandy beaches, plus it’s the perfect gateway to Mayan ruins and adventure travel in the region.

“Our new route also offers increased connectivity to the region with our codseshare partner LATAM and SkyTeam partner Aeromexico. We can’t wait for more of our customers to enjoy Virgin Atlantic’s trademark fiesta and flair, on their way to Mexico.”

Andres Martinez, Director of the Tourism Promotion Council of Quintana Roo, said they were “looking forward to welcoming new and returning visitors from the United Kingdom” to Cancun again.

One of the most famous attractions is the Chichén Itzá one of the New Seven Wonders of the World.

Other Mayan ruins are worth a visit, as well as a dip in one the many cenotes, which are natural water pools.

However, most Brits will want to visit Cancun for a fly and flop holiday, with the many beaches to choose from along the Mexican coastline, many on the back of the holiday resorts.

If you want something a bit more fast paced, the Sun’s Showbiz Reporter Jack Hardwick visited the new Hard Rock Hotel in Cancun on the ‘Las Vegas’ strip of the city,

“More than half of the hotel’s 600 rooms boast breathtaking ocean views along with OTT touches such as my giant snakeskin headboard and hot tub in every room.

“The hotel even boasts a rent-a-guitar service, where a Fender can be ordered to the room free of charge.

“There is also Mexico’s legendary Coco Bongo club with everything from a breakdancing Game Of Thrones Night King to surprisingly impressive Freddie Mercury and Moulin Rouge tribute.

“Next door is the equally wild Senor Frogs, where Pamela Anderson and Tommy Lee went on their first official date in the Nineties where I found conga lines and free tequila shots.

“For both the young and the young-at-heart looking for a buzzing trip away without sacrificing on home comforts, it really does tick all the boxes.”

The dry season runs from December to April with highs of 32C so is the best time to travel to Mexico, although can drop to 24C in January and February.

TUI is also launching Cardiff to Cancun flights in April 2026.

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Pimco, one of the world’s biggest bond fund managers, has warned that US president-elect Donald Trump’s economic plans could lead to the economy “overheating” and could halt interest rate cuts, posing a danger for stocks that shot up in the wake of his presidential election victory.

Dan Ivascyn, chief investment officer at Pimco, said US equity markets could suffer a reversal after rising sharply on the Republican candidate’s emphatic win. The S&P and Nasdaq Composite indices both surged to fresh record highs this week in anticipation of tax cuts, looser regulation and trade tariffs.

But such “reflationary” policies, in a US economy that already has “a lot of momentum”, have the potential to feed through into inflation, he warned.

“It’s not as simple and easy as just a one-way reflationary trade where risk assets should rejoice,” Ivascyn told the Financial Times.

“You want to be a little careful about what you wish for,” he said. With US inflation still stuck above the Federal Reserve’s target, “there is some risk that some of this exuberance can work its way back into both inflationary expectations or actual inflation”.

He said Trump’s policies “are coming at a time where you already have a lot of positive growth momentum, they could lead to this overheating”.

Ivascyn’s comments echo concerns held by some other investors and strategists that the reaction to this week’s election result across riskier asset classes stands at odds with the potential for rising inflation and a prolonged period of tight monetary policy. Expectations on the path of US interest rates have been a key driver of US markets in recent years.

While the S&P 500 has risen by more than 4 per cent this week, putting it on course for its biggest weekly gain this year, Trump’s victory has also pushed bitcoin to record highs and driven junk bond spreads — the premium paid by low-grade borrowers to issue debt over the Treasury — to a 17-year low.

However, government bonds initially sold off sharply earlier this week in expectation of higher inflation, although the 10-year Treasury has since made back those losses after Fed chair Jay Powell said it was too early to know what the substance of Trump’s policies would be.

While Ivascyn was not expecting a “massive inflation”, he said Trump’s policies could support growth over the long run and warned that “we certainly could get back to a point where the Fed becomes a bit concerned and where the market begins to price out some of the cuts”.

“So, we think that means: be a little careful of risk asset valuations here,” he said.

The central bank has already started to slow the pace of monetary policy easing following a flurry of strong economic data in recent weeks, notwithstanding a weak October jobs report distorted by strikes and hurricanes.

It cut rates by 0.25 percentage points on Thursday to a target range of 4.5 to 4.75 per cent, having made a jumbo-sized half-point cut as recently as September — the first reduction since 2020.

Market pricing this week indicated that traders have also started to scale back their bets on Fed easing for 2025, and now anticipate less than 1 percentage point worth of cuts by the end of next year.

Ivascyn said the “bar will be high” for rates to rise again, speaking ahead of the Fed announcement, but “a more realistic scenario will just be them on hold for a lot longer than people realise”.

That would not be “a friendly scenario to the commercial real estate market”, he said. “That could present some problems to some of these sectors that have rallied more recently in the hopes of central bank cuts.”

Still, even before central bank policymakers need to step in, Ivascyn pointed out that “the markets a lot of times do the heavy lifting for the Fed”, meaning that markets could start to price in a change in the outlook for inflation and rates without the central bank needing to signal this.

At a certain stage, bets on rising inflation and elevated interest rates could send Treasury yields up to such a level that they compete with equities as an attractive investment, dampening their appeal, said Ivascyn.

“There are practical limits to how high rates can go before they begin to negatively impact risk assets” and “that could lead to a reversal in some of this positive market sentiment, positive economic momentum”, he said.

“The markets will be a governor of sorts.”

MILLIONS of savers are set to see lower returns on their savings after the Bank of England slashed interest rates yesterday.

On Thursday, the central bank’s Monetary Policy Committee (MPC) cut the base rate by 0.25 percentage points from 5% to 4.75% on Thursday.

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The base rate directly influences the interest rates banks offer on products such as mortgages, credit cards, and savings accounts.

While mortgage holders are celebrating the reduction in borrowing costs, savers are bearing the brunt of this decision.

As borrowing costs fall, banks tend to lower interest rates on certain savings accounts.

Whether you are affected depends on your bank and the type of savings account you hold.

Some accounts have fixed interest rates for a set period, while others, such as easy-access accounts, can see their rates change at any time.

Analysis by Shawbrook Bank indicates that 1.4million savers with fixed deals ending before January could face financial setbacks if they do not get ready to switch accounts promptly.

Adam Thrower, the bank’s head of savings, warns that failing to act quickly “could be costly” for these savers.

However, Rachel Springhall, finance expert at MoneyFactsCompare.co.uk, said: “The cut to interest rates is not all doom and gloom as savers can easily switch their flexible pots elsewhere.

“Challenger banks are offering attractive returns and it would be unwise to overlook them when they have the same protections in place as a high street bank.

“Savers need to proactively keep on top of the best rates and review their pots regularly to see if they are getting a raw deal.”

For instance, Principality Building Society’s Six Month Regular Saver offers an impressive 8% interest on savings, with a minimum deposit requirement of just £1 per month.

However, if you save a maximum of £200 each month for just six months, you’ll earn at least £27.53 in interest.

However, it’s important to be aware that each type of savings account has its own conditions and limitations.

Therefore, it’s vital to thoroughly understand these details to determine which account best suits your financial needs.

We’ve outlined the best savings rates by account type below to help you maximise your returns.

What’s on offer?

The best fixed rate currently offered is Atom Bank’s one-year fixed bond, which pays 4.8% and only requires a minimum investment of £50.

Ahli United Bank’s one-year fixed bond also offers 4.8% back, but with a minimum investment of £1,000.

This means that if you were to save £1,000 in this account, you would earn £48 a year in interest.

The best notice accounts offer slightly higher rates than the best fixed-term bonds.

These also come with more flexibility when accessing your cash.

The Bank of London and The Middle East’s 90 day notice account offers savers 5.15% back with a minimum £10,000 deposit, for example.

Vanquis Bank’s 90 day notice account offers 5.10% back to those with less money to save – and it only requires a minimum deposit of £1,000.

This means that if you were to save £1,000 in this account, you would earn £51 a year in interest.

If you’re looking for a savings account without withdrawal limitations, then you’ll want to opt for an easy-access saver.

These do what they say on the tin and usually allow for unlimited cash withdrawals.

The best easy-access savings account available is from Cahoot (owned by Santander), which pays 5% – and you only need to pay a minimum of £1 to set it up.

This means that if you were to save £1,000 in this account, you would earn £50 a year in interest.

Furness Building Society’s easy access saver offers customers 4.9% back on investments worth £1 or more.

If you want to build a habit of saving a set amount of money each month, a regular savings account could pay you dividends.

Principality Building Society’s Six Month Regular Saver offers 8% interest on savings.

It allows customers to save between £1 and £200 a month.

Save in the maximum, and you’ll earn 27.53 in interest.

While regular savings accounts look attractive due to the high interest rates on offer, they are not right for all savers. 

You can’t use a regular savings account to earn interest on a lump sum.

The amount you can save into the account each month will be limited, typically to somewhere between £200 and £500.

Therefore, if you have more to save, it would be wise to consider one of the other accounts mentioned above.

What’s next for savings rates?

Savings rates usually rise and fall with the Bank of England‘s base rate.

The central bank’s decision to cut rates yesterday come after the Office for National Statistics (ONS) reported that inflation stood at 1.7% in September, well below the BoE’s 2% target.

Interest rates had previously risen from historic lows of 0.1% in December 2021, peaking at 5.25% in July 2023, as part of efforts to reduce inflation to the Bank’s target.

However, the latest MPC meeting come only one week after Rachel Reeves announced nearly £70billion in additional spending during her Autumn Statement.

The Office for Budget Responsibility (OBR) indicated that this sharp increase in spending will contribute to higher inflation in the coming months, although it will also help drive stronger economic growth.

It forecasts that inflation will average 2.5% this year and 2.6% next year before decreasing, assuming the Bank of England takes action to help bring it to the target rate.

As a result, money markets are now betting interest rates will stay slightly higher for longer.

But, the base rate is still expected to fall to 3.5% by the end of 2025.

That’s bad news for savers, whose rates typically fall when the Bank’s rate is cut.

However, in the meantime, opting for a fixed bond can be a useful bet to help ride out future cuts to the base rate.

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Robert Lighthizer, who was US trade representative when Donald Trump launched his trade war with China, has been asked to take the job again as the president-elect starts to build his cabinet team.

Several people familiar with the discussions inside Trump’s transition team said Lighthizer had been asked to return to the top trade role even though he had lobbied for a different position, including commerce secretary.

Lighthizer had also expressed interest in serving as Treasury secretary, but that position will most likely be offered to a financier, with contenders including the hedge fund managers Scott Bessent and John Paulson.

But the potential reappointment to the pivotal trade role of an arch protectionist will make US trading allies, as well as China nervous, given how closely Lighthizer and Trump are aligned on trade policy. Trump has vowed to impose high tariffs on all imports into the US and especially Chinese goods.

Trump had considered Lighthizer for commerce secretary but the people familiar with the personnel discussions said the president-elect was most likely to offer that job to Linda McMahon, the billionaire co-chair of Trump’s presidential transition team.

Brendan Boyle, the Philadelphia congressman who is the top Democrat on the influential House budget committee and a senior member of the ways and means committee that oversees trade, welcomed the news.

“When Bob Lighthizer was USTR I worked with him on the USMCA [US-Mexico-Canada Agreement]. He was bipartisan in his approach and is well respected on both sides of the [political] aisle,” said Boyle.

It remains unclear if Lighthizer will accept the position. Lighthizer did not respond to requests for comment. A spokesperson for Trump also did not immediately respond.

Robert O’Brien, who served as national security adviser during the first Trump administration and was viewed as a strong contender for secretary of state or to serve again as national security adviser, this week told his private sector consultancy clients that he would not join the administration, according to one person familiar with the decision. 

Lighthizer was highly regarded by Trump and was one of the few top level officials who did not suffer his wrath during Trump’s first term as president.

As Trump’s trade tsar, he presided over a turbulent era for global trade as the administration repeatedly hit its largest trading partners — including its allies — with steep levies and tariffs on billions of dollars’ worth of imports.

A former lawyer for the US steel industry, he frequently clashed with the Geneva-based World Trade Organization, which oversees international trade disputes, calling it a “mess” that had “failed America”.

His appointment would also signal bad news for Nippon Steel, the Japanese company that has proposed a $15bn acquisition of US Steel. Trump has already signalled his opposition to the deal, but Lighthizer would almost certainly be a strong opponent.

Lighthizer spent three decades as an attorney at Wall Street law firm Skadden Arps, where he fought imports from China on behalf of the US steel industry, including US Steel. In the early 2000s, he helped persuade George W Bush’s administration to impose tariffs on steel imports to protect the US industry.

During his previous tenure as trade representative, Washington moved away from striking trade deals driven by business interests and instead focused on measures designed to reshore manufacturing and protect American workers. Despite this, Lighthizer agreed limited trade deals with China and Japan, and updated the US’s deal with Mexico and Canada.

Writing in the Financial Times just before the US election, Lighthizer blamed free trade for the loss of American manufacturing jobs and called the US trade deficit “alarming”. “Facing a system that is seriously failing our country, Trump has decided that action must be taken,” he wrote.