NEW YORK (TheStreet) -- TW Telecom (TWTC) rose to a 52-week high of $40.51 on Monday after Level 3 Communications (LVLT) announced it would acquire the Internet services provider for $40.86 a share in a cash-and-stock deal.
The deal is valued at approximately $5.64 billion. Under the terms of the offer, TW Telecom shareholders would receive $10 in cash and 0.7 Level 3 shares.
TW Telecom stock was up 7.21% to $38.96 at 11:20 a.m. More than 7.5 million shares had changed hands by that point, nearly 10 times the average volume of 757,572.
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Separately, TheStreet Ratings team rates TW TELECOM INC as a "hold" with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate TW TELECOM INC (TWTC) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and premium valuation."
Highlights from the analysis by TheStreet Ratings Team goes as follows: