LVLT, TWTC: TW Telecom Jumps on Level 3 Deal
by Christopher Freeburn | June 16, 2014 1:24 pm
On Monday, L3 Communications (LVLT) announced that it will acquire TW Telecom (TWTC) in a deal worth roughly $5.64 billion. In midday trading, TWTC stock surged more than 7%, while LVLT shares went in the opposite direction, sinking about 6%.
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:
- Priceline (PCLN) Buys OpenTable to Kickstart Slowing Growth
- Google Buys Hot Enterprise Android Startup Divide (GOOG)
- Warren Buffett Buys a Stake in Verizon, Sells a Chunk of GM
- INTU: Intuit to Buy Bill-Payment App Check
- VIDEO: Apple Looking to Acquire Beats for $3.2 Billion
- RAD: Rite Aid Acquires RediClinic
- LVLT: /stock-quotes/LVLT-stock-quote/
- TWTC: /stock-quotes/TWTC-stock-quote/
- a deal worth roughly $5.64 billion: http://www.reuters.com/article/2014/06/16/us-tw-telecom-inc-offer-idUSKBN0ER19620140616
- [Image]: http://investorplace.com/wp-content/uploads/2011/07/level3.gif
- Priceline (PCLN) Buys OpenTable to Kickstart Slowing Growth: http://investorplace.com/2014/06/priceline-stock-pcln-opentable/
- Google Buys Hot Enterprise Android Startup Divide (GOOG): http://investorplace.com/2014/05/google-buys-divide/
- Warren Buffett Buys a Stake in Verizon, Sells a Chunk of GM: http://investorplace.com/2014/05/warren-buffett-verizon-vz-stock-gm/
- INTU: Intuit to Buy Bill-Payment App Check: http://investorplace.com/2014/05/intu-intuit-buy-bill-payment-app-check/
- VIDEO: Apple Looking to Acquire Beats for $3.2 Billion: http://investorplace.com/2014/05/video-apple-looking-acquire-beats/
- RAD: Rite Aid Acquires RediClinic: http://investorplace.com/2014/04/rad-rite-aid-acquires-rediclinic/
Source URL: http://investorplace.com/2014/06/lvlt-twtc-tw-telecom-hits-52-week-high-level-3-deal/
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