Worth Waiting On A Telecom Buyout?
Oct. 29, 2014, 5:30 PM
- Level 3 (NYSE:LVLT) will take Jabil's (NYSE:JBL) place in the S&P 500 following the Nov. 4 close.
- The announcement comes a day after Level 3 and TW Telecom (NASDAQ:TWTC) shareholders each approved the companies' cash/stock merger. The merger is expected to close before Level 3's Nov. 5 Q3 report.
- Jabil will take TW's place in the S&P MidCap 400.
- LVLT +3.1% AH. JBL hasn't moved yet.
Oct. 13, 2014, 10:32 AM| Oct. 13, 2014, 10:32 AM
Aug. 27, 2014, 11:33 AM
- Macquarie's Kevin Smithen has upgraded Level 3 (LVLT +3.5%) to Outperform, and set a $51 target. Merger partner TW Telecom (TWTC +2.7%) is following Level 3 higher.
- After talking with management, Smithen thinks Level 3 "has set conservative cost-savings targets" for the merger - the company previously forecast $240M/year in savings. He also considers TW easier to integrate than past acquisitions such as Global Crossing, given its lack of international assets and the fact the company isn't a roll-up of various properties.
- He admits there's still "a decent risk" of an integration misstep, but also believes "the risk of not owning [Level 3] if the company executes well is too great."
Jul. 30, 2014, 4:58 PM
- tw telecom (NASDAQ:TWTC): Q2 EPS of $0.10 in-line.
- Revenue of $419.7M (+7.8% Y/Y) beats by $2.42M.
Jul. 29, 2014, 10:14 AM
- Windstream's (WIN +22.3%) plans to spin off some of its telecom network assets into a REIT (following a favorable IRS ruling) has lit a fire under U.S. telecom carriers, as investors bet more REIT announcements will happen. Some might also be hoping REIT spinoffs spark additional M&A activity in an industry that has seen plenty of it.
- Frontier (FTR +15.8%) and CenturyLink (CTL +8.1%) are also off to the races, and AT&T (T +3.9%), Verizon (VZ +1.9%), and Sprint (S +2%) aren't doing badly either.
- Other gainers include Alaska Communications (ALSK +5.2%), TDS (TDS +4.1%), and Lumos Networks (LMOS +5.5%), as well as Level 3 (LVLT +5.9%) and merger partner TW Telecom (TWTC +5.2%). Level 3 posted a Q2 beat this morning.
- Windstream's spinoff will feature its fiber/copper networks and other real estate. The company expects to retire $3.2B in debt following the spinoff (expected to close in Q1 2015), and to have the REIT raise $3.5B in debt.
- Windstream plans to have an aggregate annual dividend of $0.70/share following the spinoff ($0.60 for the REIT, $0.10 for Windstream proper). That's down from a current $1.00/share.
Jun. 16, 2014, 7:08 PM
- "TWTC has a very dense fiber metro base, and I think combined with LVLT domestic and international long-haul routes, the company will be able to deliver a new level of fiber connectivity around the world," says Stephens' Barry McCarver, offering an upbeat view of the Level 3 (LVLT -4.1%)/TW Telecom (TWTC +7.3%) deal.
- But others on the Street weren't as thrilled about the price, which at announcement time represented a 26% premium to where TW closed on Thursday, before a BrightWire report about Level 3's interest arrived.
- Light Reading's Carol Wilson notes the deal significantly boosts Level 3's enterprise/Ethernet reach, and that TW has a stellar reputation. "Twice in the past year I've had executives from tw telecom competitors volunteer the fact that they purposely avoid going head-to-head with that particular service provider."
- Level 3 is offering $10 in cash and 0.7 shares for each TW share. The company has already lined up $3B in financing; it had $7.8B in net debt at the end of Q1.
- Level 3 expects $240M/year in cost synergies ($200M adjusted EBITDA, $40M capex), and sees $170M in integration costs. TW shareholders will own 29% of the merged company. TW CEO Larissa Herda will be stepping down once the deal closes in Q4.
Jun. 16, 2014, 9:15 AM
Jun. 16, 2014, 7:50 AM
- Level 3 Communications (LVLT) agrees to acquire TW Telecom (TWTC) in a stock and cash deal valued at ~$7.3B, including ~$1.6B of net debt ($40.86/share); trading is halted for both.
- TWTC has long been considered a takeover candidate, owing to its strength in the data space.
- LVLT expects the acquisition to be accretive to free cash flow/share after the first year.
Jun. 13, 2014, 12:46 PM
Jun. 12, 2014, 6:57 PM
- Level 3 (LVLT) is "intensifying talks with TW Telecom (TWTC) about a possible acquisition," though no deal is imminent, sources tell BrightWire.
- TW (current market cap of $4.5B) has a large nationwide fiber network (connects 20K+ commercial buildings) that would bolster Level 3's own network, and bills itself of the top 3 U.S. business Ethernet providers. Both companies are based out of Colorado.
- BrightWire states Level 3 was also interested in TW back in 2012, when the company (per reports) hired Evercore to explore its options. But Level 3 is in much better shape today to make a bid.
- Speculation that Level 3 could bid for TW has been around for a while.
May 7, 2014, 5:56 PM
- tw telecom (TWTC): Q1 EPS of $0.07 misses by $0.03.
- Revenue of $408.29M (+7.1% Y/Y) beats by $1.16M.
Feb. 11, 2014, 5:18 PM
- tw telecom inc. (TWTC): Q4 EPS of $0.11 in-line.
- Revenue of $400.01M (+5.9% Y/Y) misses by $0.62M.
Feb. 11, 2014, 12:10 AM
Feb. 10, 2014, 5:35 PM
Nov. 6, 2013, 5:27 PM
- Time Warner Tcom (TWTC): FQ3 EPS of $0.12 misses by $0.01.
- Revenue of $393.2M (+6.6% Y/Y) beats by $0.47M. (PR)
Sep. 10, 2013, 1:33 PM
Tw telecom inc together with its wholly-owned subsidiaries provide managed network services specializing in Ethernet and data networking, Internet access, local and long distance voice, VPN, VoIP and network security services.
Industry: Telecom Services - Domestic
Country: United States
Other News & PR