LVLT, TWTC: TW Telecom Jumps on Level 3 Deal

by Christopher Freeburn | June 16, 2014 1:24 pm

On Monday, L3 Communications (LVLT[1]) announced that it will acquire TW Telecom (TWTC[2]) in a deal worth roughly $5.64 billion[3]. In midday trading, TWTC stock surged more than 7%, while LVLT shares went in the opposite direction, sinking about 6%.

level3[4]LVLT says it will pay $40.86 per TWTC share. That’s a 12% premium over the internet service provider’s Friday closing price. LVLT will pay for each TWTC share with $10 in cash and 0.7 LVLT shares, Reuters notes.

The merger is expected to be classed as a tax-free reorganization. LVLT anticipates spending $170 million to integrate the companies. The deal is expected to be completed in the fourth quarter.

LVLT indicated that it has raised $3 billion in financing for the acquisition of TWTC.

More M&A News:

  1. LVLT: /stock-quotes/LVLT-stock-quote/
  2. TWTC: /stock-quotes/TWTC-stock-quote/
  3. a deal worth roughly $5.64 billion:
  4. [Image]:
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