What Is The New Level 3 Communications Worth?


On June 16, 2014 Level 3 Communications (LVLT) and tw telecom (TWTC) announced Level 3 will acquire tw telecom in a stock-and-cash transaction which we examined in our last article. We projected pro-forma results over the next five years. Those who follow these articles know I publish detailed historical and projected financials reflected in this and past articles available (in pdf format) here and an interactive model allowing readers to input their own assumptions to generate a detailed financial summary and income statement and fair value here.

Those who follow the company know Level 3 does not make public long-term forecasts as to future performance or other prospective financial information beyond the current fiscal year leaving it up to analysts and investors the task of determining if there is long term value to be had. This article is not going to get into Business segments, financial trends based on historical trends, risks etc. Why? Because all this was discussed in the last two articles which can be found here and here.

This is an update to compare the research published in past articles (and data on the IIEX website) to data from the S-4 filed with the SEC. This filing provides selected longer term financials prepared by Level 3 and tw Telecom as part of the due diligence in connection with the merger. This filing provides a check to existing research which has been based on the historical trends of the new focus (Enterprise) by new Level 3 leadership.
…Click here to continue to the full article…

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Click "About" in the menu at the top for more information about the author. We also have a page at "Seeking Alpha" ( http://seekingalpha.com/author/david-klein ). Please Click on and read the "Disclaimer" in the menu at the top. Have a question? Contact us at iiex@live.com.
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