Level 3 Shares Higher After Benzinga Pro Reports Company Considering Strategic Alternatives


Benzinga Professional reported Level 3 Communications LVLT is reviewing strategic alternatives Wednesday morning.

Level 3 is considering a range of options from an outright sale of the company to a large buyback, Benzinga Pro reported to users of its Market-Moving Exclusives Feed. Shares rose six percent to a high of $59.79 following the report.

According to an industry source, Comcast CMCSA is a potential suitor for Level 3. Commenting on Comcast’s push into enterprise services, analyst Colby Synesael of Cowen & Co wrote in a note published toward the end of 2015, “... our long-held/long-term view [is] that Level 3 is likely to be acquired by Comcast as we believe ultimately Comcast (and perhaps Charter) will look to compete against AT&T/Verizon across all facest of their business…”

Analysts have been mixed on Level 3 in 2016 with two upgrades and two downgrades. Ratings data provided by Benzinga Professional. Before Wednesday’s gain, shares were flat for the year.

At last check, shares of Level 3 Communications are trading 3.1 percent higher to $56.04, suggesting a $635 million gain in market cap. Comcast shares are down 0.2 percent to $66.99.

Market News and Data brought to you by Benzinga APIs
Posted In: NewsM&AAlternative CarriersTelecommunication Services
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!