Today's Tech Winners and Losers

Shares of Level 3 Communications(LVLT Quote) were among technology's winners Monday, rising 6% after the telecommunications company agreed to acquire privately held TelCove for about $1.24 billion.

The deal consists of $637 million in stock, $445 million in cash, and $155.5 million in assumed debt. "The acquisition of TelCove increases our ability to provide end-to-end bandwidth services to our customers," Level 3 said. "In addition to the contribution to operating margins, this additional metropolitan and regional capability will enable us to extend the network reach we offer to our customers and enable TelCove's customers to benefit from our national network and broad suite of IP-based services." TelCove is expected to generate $380 million to $400 million in revenue during 2006 and deliver operating income before depreciation and amortization of $125 million to $135 million. The deal is expected to close during the third quarter. Shares of Level 3 were trading up 35 cents to $5.75.

Shares of Napster(NAPS Quote) traded actively after the online music provider said consumers will be able to get music for free on a limited basis from its Web site. The company will let users play each song up to five times for free. Shares were trading up 6 cents to $4.69 on volume of 5.6 million shares, compared with the average daily volume of 1.8 million.

Comverse Technology(CMVT Quote) shares rose 5% after the software company announced the resignation of its chief executive and two other members of the executive suite. The resignations of CEO Kobi Alexander, CFO David Kreinberg, and senior general counsel William Sorin come just two weeks after the company announced a substantial restatement related to stock-option grants. The company, which is currently looking into issues related to the timing of the grants, said the former executives will serve as advisors to the company on an interim basis and continue to cooperate with the special committee that is reviewing the grants.