NEW YORK ( TheStreet) -- Frontier Communications ( FTR) isn't getting the kind of reward one might expect for having completed an acquisition that will significantly increase the size of its business. Frontier, a phone company that focuses on small towns and rural areas, recently completed its acquisition of 4.1 million access lines spanning 14 states from Verizon ( VZ) for $8.6 billion in a cash and stock deal. The acquisition, announced over a year ago, is expected to triple the size of Frontier Communications. Despite this, Frontier shares are trading sharply lower on Tuesday, down 4.5% to $7.02. More than 30 million shares have changed hands, five times its average trading volume of 6.3 million. Josh James, an analyst at Stifel Nicolaus, attributes the recent selloff to "shareholder dislocation" following the acquisition. Verizon shareholders will receive one share of Frontier for every 4.2 shares they own, as part of the deal. According to James, institutional shareholders of Verizon are likely hedging their positions in anticipation of the upcoming distribution of Frontier Shares. "In our view, there is likely to be a portion of the VZ shareholder base that will not want to hold on to FTR shares because of varying investment objectives," said James in an email. "We expect volatility around shares of Frontier for the next week or so." Stifel Nicolaus has a buy rating on the stock. Shares of Verizon were down 1.1% to $26.51 in afternoon trading. -- Reported by Shanthi Venkataraman in New York. Follow TheStreet.com on Twitter and become a fan on Facebook.