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Zayo Group Holdings  (ZAYO) - Get Free Report  shares traded higher Thursday, extending gains for second consecutive session, after activist shareholder Starboard Value LP disclosed a 4% stake in the communications infrastructure provider.

Starboard revealed its stake earlier this week and sent a letter to Zayo CEO Dan Caruso and the company's board Thursday encouraging them to consider a sale. UBS analyst John Hodulik said an offer in the "mid $30s could meet private equity return hurdles", based on his leveraged buyout model.

There have also been reports from Bloomberg that Digital Colony is weighing a bid for the group, which has also been pushed to explore sale options from activist Sachem Head Capital.

Zayo shares were marked 0.55% higher by mid-day in New York, after surging nearly 13% on Wednesday, to change hands at $27.65 and value the Boulder, Co.-based group at just over $6.5 billion.

On Wednesday, the fiber company canceled its Analyst Day meeting just days before the scheduled event and said it is currently evaluating strategic alternatives to bolster shareholder value. 

In January, Alphabet (GOOGL) - Get Free Report and CenturyLink (CTL) - Get Free Report  were said to be considering Zayo as a buyout target.

Once a serial acquirer of its fiber rivals, co-founder and fiber veteran Dan Caruso listed a wide range of strategic alternatives five years ago, at its 2014 IPO.

There are 15 buys, four holds and no sell ratings on the stock, according to Bloomberg data. The average price target is $34.13. 

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