**Editor’s Note: Click here for our extensive coverage of the proposed merger between Level 3 and tw telecom.**
Level 3 on Monday announced it plans to buy the Ethernet and managed-service provider for $5.7 billion, assuming another $1.6 billion in debt, if it gets regulatory approval.
But tw telecom has long been considered an attractive acquisition target. Cable giant Comcast has been linked to rumors, and so has CenturyLink, which now seems like a more likely second suitor since Comcast is busy with its proposed acquisition of Time Warner Cable.
Analysts are generally bullish on a Level 3-tw telecom tie-up, but at least one believes the door is still open to another communications behemoth to step in and make things interesting, if not ultimately unsuccessful.
“We think the combination [of Level 3 and tw telecom] is strategically logical and initial synergies estimates could prove conservative,” noted Canaccord Genuity analyst Greg Miller. “Though possible another bidder could emerge, we believe the deal as constituted is beneficial to both shareholders, will meet regulatory approval and is likely to be completed.”
Telecom agents that Channel Partners talked to also were more positive than negative about Level 3-tw telecom.
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December 14 2018 @ 18:50:05 UTC