Today's Tech Winners and Losers

Napster trades actively after announcing plans to make songs free on a limited basis.
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Shares of

Level 3 Communications

(LVLT)

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)

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)

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.

Meanwhile, Comverse named Raz Alon, an independent board member, interim CEO. Avi Aronovitz, currently vice president of finance and treasurer, will serve as interim chief financial officer. And Paul Robinson, currently vice president of legal and general counsel, will assume the role of chief administrative officer, general counsel, and corporate secretary. Comverse shares were up $1.18 to $23.83.

TNS

(TNS)

rose 1% after the datacommunications services company rejected a management-led acquisition proposal worth $22 a share. "The special committee determined that the $22 offer price undervalues TNS," the company said. TNS said its committee, along with financial adviser Deutsche Bank, will continue to evaluate a range of strategic alternatives aimed at enhancing shareholder value. The management-led proposal, which was first announced on March 13, represented a premium of about 33% when the offer was originally made. Shares were recently up 25 cents to $20.98.

Shares of

Ceragon Networks

(CRNT) - Get Report

fell 7% after the wireless-equipment maker posted in-line first-quarter earnings. The company earned $288,000, or 1 cent a share, on revenue of $21.3 million. Excluding stock-based compensation costs, the company earned $1 million, or 4 cents a share. Analysts polled by Thomson First Call expected earnings of 4 cents a share and revenue of $20.5 million. During the year-earlier quarter, the company earned $834,000, or 3 cents a share, on revenue of $16.8 million. Shares, which had climbed nearly 39% since the beginning of the year, were recently down 39 cents to $5.

Other technology movers included

Microsoft

(MSFT) - Get Report

, up 21 cents to $24.36;

Intel

(INTC) - Get Report

, down 29 cents to $19.69;

Cisco Systems

(CSCO) - Get Report

, up 33 cents to $21.28;

Nortel Networks

(NT)

, down 5 cents to $2.61;

Sun Microsystems

(SUNW) - Get Report

, down 2 cents to $4.98;

Lucent Technologies

(LU)

, down 4 cents to $2.76;

Oracle

(ORCL) - Get Report

, up 1 cent to $14.60;

Sirius Satellite Radio

(SIRI) - Get Report

, up 3 cents to $4.71;

Conexant Systems

(CNXT) - Get Report

, up 12 cents to $3.66;

Apple Computer

(AAPL) - Get Report

, up 51 cents to $70.90;

Ciena

(CIEN) - Get Report

, down 4 cents to $4.05;

JDSU

(JDSU)

, up 3 cents to $3.52; and

Dell

(DELL) - Get Report

, unchanged at $26.20.