toes, when will u ever learn? damn son, peepee is living in a dream world with all of his paper profits. he has to pump this puppy to get others to believe his bull
why is slim exiting? hmmmnnn. what about rainwaters bitch? is she exiting as well?
GLBC? 3x revenue? Oh my, hopefully you're not that dense. 3X revenue would be $5.4B in enterprise value, which would imply a stock price of almost $100/share.
There's a reason Telcove was expensive. IT GENERATES CASH.
Level 3 to Acquire TelCove
Monday May 1, 6:55 am ET
Purchase Price of $1.2375 Billion Includes $637 Million in Shares of Level 3 Common Stock, $445 Million in Cash and the Assumption of $155.5 Million in Debt
Acquisition Expands Level 3's Network Reach in Key Metropolitan Regions in Eastern U.S.
BROOMFIELD, Colo., May 1 /PRNewswire-FirstCall/ -- Level 3 Communications, Inc. (Nasdaq: LVLT - News) today announced that it has signed a definitive agreement to acquire TelCove, Inc., a privately held Pennsylvania-based telecommunications company. Under terms of the agreement, Level 3 will pay total consideration of $1.2375 billion, consisting of $637 million in shares of Level 3 common stock, $445 million in cash and $155.5 million in the assumption of debt.
TelCove is a leading facilities-based provider of metropolitan and regional communications services including transport, Internet access and voice services. TelCove's network has over 22,000 local and long haul route miles serving 70 markets across the eastern United States, with approximately 4,000 buildings on net. TelCove has annual revenues of about $390 million and Adjusted OIBDA of about $130 million. As part of the transaction, Level 3 will be acquiring over 300 LMDS and 39 GHz licenses covering 90 percent of the population of the United States.
"The acquisition of TelCove increases our ability to provide end-to-end bandwidth services to our customers," said James Q. Crowe, chief executive officer of Level 3. "In addition to the contribution to operating margins, this additional metropolitan and regional capability will enable us to extend the network reach we offer to our customers and enable TelCove's customers to benefit from our national network and broad suite of IP-based services.
"It has been a pleasure working with Doug Teitelbaum and Kurt Cellar of Bay Harbour Management as we worked to conclude this agreement, and we look forward to working with Bob Guth and the management team at TelCove in the coming months and years."
"Bay Harbour Management has been the controlling shareholder of TelCove for two years. Our team, headed by Kurt Cellar, has worked closely with TelCove to nurture growth through significant capital investment and acquisitions," said Doug P. Teitelbaum, managing partner of Bay Harbour Management, LC. "This merger with Level 3 accomplishes our goals by positioning us to be investors in a leading nationwide communications carrier."
"TelCove's metro fiber assets are among the most robust in the industry, and we have an outstanding base of loyal and satisfied customers who will benefit greatly from this acquisition, and a team of dedicated employees who are excited to play a key role in this unfolding vision," said Bob Guth, president and chief executive officer at TelCove. "This is a great day for all TelCove stakeholders, and a significant step by Level 3 that will drive real choice to customers on a national basis."
After integration, TelCove's metropolitan and regional networks will connect Level 3's national backbone network directly to traffic aggregation points. These aggregation points include other carriers' points of presence, local telecommunications companies' central offices, wireless providers' switch centers, colocation and data centers, cable company head ends, and high-bandwidth enterprise locations. Before the pending acquisitions of TelCove and ICG Communications and the completed acquisition of Progress Telecom, Level 3 already had extensive metro infrastructure in 36 markets, connecting to approximately 900 traffic aggregation points, and Level 3 believes that these facilities have been a source of considerable competitive advantage. The acquisition of Progress and, after close, of TelCove and ICG Communications will increase the number of traffic aggregation points to approximately 5,000 in the U.S. and approximately 5,200 globally.
for once, i can totally agree with your proclamation! now if we could only get peepee to understand in hand profits vs. paper profits.
as for the good news u mentioned, legere being fired would work.
Now that the month of April is closed out and the price of GLBC is stalled, the month of May will see selling as the hot money that joined the chase up from $16 to $28 decides to cash in and take profits.
It constantly takes new money to keep a rally going. Good news is needed to sustain a rally once it stalls.