UPDATE: Stifel Nicolaus Downgrades SureWest Communication to Hold

Stifel Nicolaus lowers its rating on SureWest Communication

to Hold from Buy as the company is acquired by Consolidated at 47 percent premium that will likely keep away any other, more attractive offers. Stifel Nicolaus notes, "Consolidated Communications announced that it is acquiring SureWest Communications in a cash/stock transaction that values SureWest at $23/share, or a 47% premium over Friday's closing price. While standard regulatory approvals are needed, we do not see any material risk of significant issues arising, and, given the significant premium, we do not anticipate a higher bid from another suitor. California may be the only state approval that is needed in fact, as the Kansas PSC has already said it will not need to review the transaction." SURW closed at $22.67 a share on Monday.