Report: Lumos Networks Hires Investment Bank

Lumos Networks Corp LMOS shares spiked Thursday on a report the company is exploring a possible sale.

The fiber provider has seen flat sales and weak profits in recent quarters, while its share price is down more than 20 percent year-to-date.

But its shares jumped 11 percent Thursday to $16.66, after unnamed sources cited by Bloomberg said the the company has hired Wells Fargo to help with a potential sale of the company.

Lumos last week named Johan Broekhuysen chief financial officer. The 43-year-old Broekhuysen had served as interim CFO since Harold L. Covert resigned in March.

Lumos, with a market capitalization of about $365 million could be valued at $1 billion including debt, according to sources cited by Bloomberg.

The report said regional phone companies, as well as some private equity firms might be interested in acquiring Lumos.