Level 3 Communications Inc said it would purchase internet services provider tw telecom Inc for $40.86 per share in cash and stock to expand its commercial fiber network in the United States.The deal, valued at about $5.64 billion based on outstanding shares as of April 30, represents a premium of 12 percent to tw telecom's Friday closing price on the Nasdaq.Tw telecom shares, which have not traded over $40 since 2001, reached an intraday high of $40.51."It's a fair price for TWTC shareholders, certainly the highest multiple the stock has seen," Stephens Inc analyst Barry McCarver told Reuters.
Level 3 Communications, Inc. (Level 3) is a facilities-based provider of a range of integrated communications services. Shares of LVLT fell by 5.51% or $-2.43/share to $41.66. In the past year, the shares have traded as low as $19.71 and as high as $44.77. On average, 1436590 shares of LVLT exchange hands on a given day and today's volume is recorded at 6498927.
tw telecom inc. is a national provider of managed network services, specializing in business Ethernet, data networking, Converged, Internet protocol-based virtual private network (IP VPN), Internet access, voice, including voice over Internet Protocol (VoIP), and network security services to enterprise organizations, including public sector entities, and carriers throughout the United States, including their global locations. Shares of TWTC traded higher by 6.8% or $2.47/share to $38.81. In the past year, the shares have traded as low as $25.83 and as high as $36.82. On average, 757572 shares of TWTC exchange hands on a given day and today's volume is recorded at 8684979.
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