Level 3 Nabs Broadwing

Level 3's (LVLT Quote) shares rose after the company agreed to buy telecom network rival Broadwing (BWNG Quote) for $1.4 billion in cash and stock.

The Broomfield, Colo., wholesale phone-service provider says it will pay $8.18 in cash and 1.3411 Level 3 shares for each share of Broadwing. Level 3 expects to hand over about $744 million in cash and issue around 122 million shares to complete the deal.

Broadwing, based in Austin, Texas, sells phone and data services to businesses and also provides network capacity for other telcos.

"The acquisition of Broadwing is consistent with both the Level 3 wholesale market strategy, as well as our more recent entry into the enterprise market," CEO Jim Crowe said in a press release Tuesday. ...