Slim Prospects for Level 3, Sprint Deal

The numbers don't add up for the rumored network deal between Level 3 Communications (LVLT Quote) and Sprint (S Quote).

Shares of Level 3 surged as much as 21% Wednesday after The Wall Street Journal reported the two phone companies were in "preliminary discussions" to combine so-called long-haul network assets in a separate venture.

Citing people close to the talks, the Journal story said Sprint would retain a controlling 51% stake if the companies struck a deal. Otherwise, a partnership of some kind could also emerge from the discussions. ...