Report: Rackspace Is Target Of CenturyLink

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Rackspace Hosting Inc.
RAX
is the acquisition target of landline phone company CenturyLink Inc.
CTL
, according to a report by Bloomberg news service Monday. Rackspace jumped more than 5 percent in early trading to $39.20 a share. Rackspace, a cloud services company with a market capitalization of $5.62 billion, in mid-May said it received buyout offers and hired Morgan Stanley to evaluate the bids and to “explore other alternatives.” A rumored CenturyLink deal was first reported in July by Brightwire. https://www.brightwire.com/article/Rackspace-auction-draws-tepid-response-sources-say.html CenturyLink, the nation's third-largest tecom with a market capitalization of 23.23 billion, has been developing a could service since at least 2011, when it paid $42.5 billion to acquire hosting company Savvis. It has since made a number of additional acquisitions in the field. Rumors of cooled recently of the possible sale of Rackspace to Hewlett Packard
HPQ
and International Business Machine Corp. (NYSE IBM) have recently cooled.
Posted In: NewsRumorsM&AIntraday Update
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