Estimated read time: Less than a minute
This archived news story is available only for your personal, non-commercial use. Information in the story may be outdated or superseded by additional information. Reading or replaying the story in its archived form does not constitute a republication of the story.
NEW YORK (AP) — Level 3 Communications Inc. said Monday that it has agreed to buy TW Telecom in a deal worth about $5.6 billion.
The Internet and telecommunications company says the acquisition will increase its local operations. Level 3, which is based in Broomfield, Colorado, owns network and data centers around the world. Littleton, Colorado-based TW Telecom provides data and Internet and other services to businesses in the U.S.
Level 3 will pay $40.86 for each outstanding share of TW Telecom. As of April 30, TW Telecom had 137.9 million outstanding shares. Level 3 said the total deal will be worth $7.3 billion, which includes the amount of debt it will take on from TW Telecom.
TW Telecom shareholders will receive $10 in cash and 0.7 shares of Level 3 for each share they own. The deal is expected to close in the fourth quarter.
Shares of TW Telecom rose $2.56, or 7 percent, to $38.90 in morning trading. Level Three shares fell $2.49, or 5.7 percent, to $41.60.
Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.