NEW YORK (TheStreet) -- Shares of Level 3 Communications Inc. (LVLT) are now down -5.04% to $41.87 on very heavy trading volume after the integrated communications services firm earlier said it will buy Internet services provider TW Telecom Inc. (TWTC) for over $5.6 billion to expand its commercial fiber network in the U.S.
TW Telecom share are up 8.06% to $39.27.
Level 3 shareholders would own 71% of the combined company and TW Telecom shareholders the rest, Reuters noted.
TheStreet Ratings team rates LEVEL 3 COMMUNICATIONS INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate LEVEL 3 COMMUNICATIONS INC (LVLT) 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 impressive record of earnings per share growth, compelling growth in net income and revenue growth. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet."
Highlights from the analysis by TheStreet Ratings Team goes as follows: