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.

Posted In: Alternative CarriersTelecommunication ServicesNewsM&A