Zayo announced that it's cancelling its analyst meeting scheduled for 14 March as the board and management are evaluating "strategic alternatives that may enhance shareholder value". The company said it wants to allow time to explore these alternatives, and this is expected to take at least a few weeks if not several months. The announcement follows reports that Zayo has attracted investor interest for its fibre infrastructure assets.
Zayo announced last year a plan to split into two companies, with one taking the network infrastructure and the other focused on managed services. The company said it plans to continue to focus on its infrastructure business, which offers positive cash flow and attractive margins. "Whether public or private, this will remain Zayo’s focus and we will continue to expand the depth and breadth of our fiber infrastructure," said CEO Dan Caruso in a statement.
Reports in late 2018 said that Zayo had attracted takeover interest from private equity and investment funds. The company's share price is down significantly in the past year, from a high of nearly USD 40 last summer to around USD 25 more recently.
In February, Reuters reported that hedge fund Sachem Head Capital Management had written to the company urging it to explore a sale. According to people familiar with the matter, Zayo earlier rejected acquisition offers from a private equity consortium of Blackstone Group, Stonepeak Infrastructure Partners, KKR, I Squared Capital, Charlesbank Capital Partners and GTCR.
