Boston, MA 06/16/2014 (wallstreetpr) – TW Telecom Inc (NASDAQ:TWTC) was reported to rise 10.2% to as much as $35.63 in Friday trading. Speculations say that the rise is on account of the news published by BrightWire, the New York based global investment newswire, which claimed that Level 3 Communications, Inc. (NYSE:LVLT) is seeking to acquire TW Telecom.
“Intensifying Talks”
BrightWire said that the suitor is intensifying talks with TW Telecom Inc (NASDAQ:TWTC) again, after first approaching the company in 2012, as reported by two people having knowledge into the matter. The two sources, who declined to be identified because the news is not yet public, however said that as of now no deal is imminent. They reported that in 2012, Level 3 was interested in buying the Littleton, Colorado, headquartered company after it kept investment bank Evercore to explore options while offering itself for sale. According to reports, that has led to a bond offering instead of a sale.
Level 3 Communications, Inc. (NYSE:LVLT), which is facilities centered provider of integrated communications services, was one of the several companies that had accessed the potential of TW Telecom as a purchase. However, at that time, according to the sources, Level 3 itself was struggling with losses with stock prices below TW’s, which claims to be the U.S. third biggest business ethernet provider.
2014 Versus 2012
From 2012 Level 3 Communications, Inc. (NYSE:LVLT) has almost doubled its share value, improving in turn the chances for the sought buyout. The Colorado based company has a market worth of $10 billion and currently has its shares priced at around $42.41. TW, on the other hand, holds a market capitalization of $4.5 billion and is trading at 20% higher than in 2012.
BrightWire further mentioned that there’s an increased chance of a possible between the two Colorado based companies, given the changes incorporated in both in the two years’ time. Post this news, The Street announced the stock TW Telecom Inc (NASDAQ:TWTC) a “Hold”.
