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