Level 3 to Acquire TelCove for $1.1 Billion
From Bloomberg News
Level 3 Communications Inc. agreed to buy closely held TelCove Inc. for $1.1 billion to tap surging use of fiber-optic telephone and data networks in the Eastern U.S.
The price includes $637 million in stock and $445 million in cash, Broomfield, Colo.-based Level 3 said. The company would assume $155.5 million in debt.
TelCove has lines in markets such as Washington and New York, helping Level 3 compete for customers with rivals such as Verizon Communications Inc. after posting losses in each of the last seven years.
