All,
I thought this news might be of interest.
Regards,
Dawn DiPietro
NEW YORK, May 1 (Reuters) - Level 3 Communications Inc. (LVLT.O: Quote,
Profile, Research) said on Monday it agreed to buy privately-held
TelCove Inc. for $1.08 billion in cash and stock in a deal that gives it
an extended land-line network and wireless airwaves licenses.
Level 3, a communications network provider, said the purchase price
includes $637 million of stock and $445 million cash. In addition, it
will assume $155.5 million of TelCove debt.
Level 3 said it expects TelCove, a Pennsylvania-based communications
provider, to generate operating income before depreciation and
amortization of $125 million to $135 million on revenue of $380 million
to $400 million in 2006 on a stand-alone basis.
It forecast an annual revenue growth rate of 10 percent to 12 percent
for TelCove, with gross margins of 80 percent.
Level 3, which expects the deal to close in the third quarter, said it
plans to join its long-distance network with TelCove's metropolitan and
regional networks in key Eastern U.S. markets.
http://tinyurl.com/lt47d
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