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TW Telecom Jumps After Investor Says It May Be Takeover Target

TW Telecom Inc. (TWTC), a supplier of phone and Internet services to businesses, jumped the most in almost two years after shareholder Corvex Management LP said the company may be a takeover target.

Level 3 Communications Inc. (LVLT), the operator of a global fiber-optic network, would be a good acquirer for TW Telecom, Keith Meister, the founder and managing partner of New York- based Corvex, said today at a conference. Meister was a protege of billionaire Carl Icahn before starting Corvex, which owns stakes in both companies.

Meister said he is bullish on the industry and sees the stocks of the two companies climbing. TW Telecom could rise about 40 percent to $38 a share, while Level 3 may reach $34, he said.

“Great space, growing trends, great companies,” Meister said at the conference. TW Telecom is particularly attractive as an acquisition, he said. “There is massive value in an M&A context.”

Shares of TW Telecom, based in Littleton, Colorado, climbed 7.1 percent to $29.13 at 1:43 p.m. in New York after his remarks. The stock rose as high as $29.24 during the session, marking the biggest intraday jump since August 2011. Level 3, located in nearby Broomfield, Colorado, rose as much as 6.7 percent to $24.76.

To contact the reporter on this story: Saijel Kishan in New York at skishan@bloomberg.net

To contact the editor responsible for this story: Nick Turner at nturner7@bloomberg.net

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