Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Bloomberg Customers

TW Telecom Jumps After Investor Says It May Be M&A Target

Updated on

TW Telecom Inc., a seller of phone and Internet services to businesses, jumped the most in 21 months after activist investor Corvex Management LP said it bought a 6 percent stake and called the company a takeover target.

Level 3 Communications Inc., 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 investor Carl Icahn before starting Corvex, which also owns a stake in Level 3.

Meister said he’s bullish on the industry and sees the stocks of the two telecommunications companies climbing. TW Telecom could rise about 40 percent to $38 a share, while Level 3 may reach $34, he said. Meister said his firm’s 6 percent ownership of TW Telecom will be reflected in a regulatory filing later today.

“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 5.8 percent to $28.77 at the close in New York, the biggest one-day jump since August 2011. Level 3, located in nearby Broomfield, Colorado, rose 3.4 percent to $23.99.

In response to Meister’s remarks, TW Telecom said its communications channels are open to shareholders.

“We have a long history of open dialogue with investors, including Corvex, and we look forward to maintaining ongoing conversations with them and all our investors,” said Bob Meldrum, a spokesman for the company.

He declined to comment on any deal speculation, as did Monica Martinez, a Level 3 spokeswoman.

Corvex owns 0.9 percent of Level 3’s outstanding shares, according to data compiled by Bloomberg.

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.