FRNT news: Is this good or bad news? Sounds bad.
Frontier Air Stake Cut by Wexford Management to 2.4% From 5.2%
Washington, Jan. 28 (Bloomberg) -- Wexford Management LLC cut its stake in Frontier Airlines Inc., a Denver-based discount passenger airline, to 2.4 percent from 5.2 percent.
The Greenwich, Connecticut-based private investment group reduced its holdings, which it acquired in December 1997, to warrants to buy 380,120 Frontier common shares, according to its Schedule 13G amendment filed with the U.S. Securities and Exchange Commission today.
Last October, Wexford reported holding warrants to buy 780,700 shares of the airline, which had $147.1 million of revenue in its last fiscal year, ended March 1998.
''It's been a nice investment for us,'' said Charles E. Davidson, chairman and a managing member of Wexford. ''We're selling the warrants in the money,'' he said, meaning profitably.
Davidson confirmed that Wexford has cut its Frontier stake by exercising its warrants and selling the shares. The price and timing of the sales weren't disclosed in the Schedule 13G filing, a passive-investor short form that isn't required to provide transaction details.
Frontier shares, unchanged at 7 3/8 today, have almost quadrupled in value from a year ago, when they closed at 1 7/8.
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