Just a few months ago, a merger between CenturyLink and business-communications provider tw telecom was rumored to be "a done deal," but you know how that goes sometimes. Now there's a different name in the mix – Level 3 Communications.
Keith Meister, founder of Corvex – a key tw telecom shareholder – said today that he sees Level 3 being a great suitor for the Denver-based company. Corvex owns a shares of both companies, Bloomberg points out.
“Great space, growing trends, great companies," Meister is quoted in the article as saying. “There is massive value in an M&A context [for Level 3 to acquire tw telecom]."
Level 3's name comes up regularly when there is major M&A speculation, but many analysts have said it wouldn't be a good move for the company due to its debt and slow integration of Global Crossing, which it acquired in 2011.
Merger talk will do wonders for your stock price, even if there's nothing concrete to base it on. Level 3's shares rose more than 3 percent on Wednesday, while tw telecom's price jumped nearly 6 percent to $28.75 – it's highest level in nearly 12 years.
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