cbs4

Local

Colorado-Based Level 3 To Buy TW Telecom For About $5.6B

View Comments

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, owns network and data centers around the world. Littleton-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 2014 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

View Comments
blog comments powered by Disqus