NEW YORK (TheStreet) -- The law firm Levi & Korsinsky is investigating the board of TW Telecom (TWTC) for possible breaches of fiduciary duty and other violations of state law in connection with the sale of the company to Level 3 Communications Inc. (LVLT)
The law firm said the investigation concerns whether the board of TW Telecom failed to adequately shop the company around before agreeing to enter into the transaction, and whether Level 3 is underpaying for TW telecom shares.
Shares of Level 3 Communications are down -2.23% to $42.03, and TW Telecom shares are up slightly 0.24% to $39.56 in after-hours trading.
Must Read: Warren Buffett's 25 Favorite Stocks
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."