**Editor’s Note: Please click here for a recap of the biggest communications mergers in Q2 2014.**
A new Oppenheimer report says Colorado-based Level 3 is the most likely acquirer of those assets, Investors.com noted. Sprint, in turn, then might lease them back.
“We see a sale-leaseback of (Sprint’s) long-distance network as likely,” said Oppenheimer analyst Tim Horan in a research report. “We suspect Level 3 would be the most likely partner, and it would be quite accretive to its FCF (free cash flow).”
Level 3 Communications is already in the middle of a huge merger. Its $5.7 billion acquisition of rival tw telecom is expected to close before the end of the year. The deal is expected to create a more significant rival to networks provided by AT&T and Verizon.
Level 3 stock is up a little more than 1 percent on the news Wednesday.