Level 3 Agrees to Purchase Global Crossing

[William Allen Simpson <william.allen.simpson () gmail com>]

http://www.bloomberg.com/news/print/2011-04-11/level-3-agrees-to-acquire-global-crossing-in-deal-valued-at-1-9-billion.html

The deal will combine two unprofitable companies with total revenue of
$6.26 billion as of last year, and cut annualized capital spending by
about $40 million, according to the statement. It will also help reduce
the pressure on prices, which have declined by as much as 30 percent a
year in the industry, said Donna Jaegers, an analyst at DA Davidson &
Co.

“This is what telecom has needed for a long time,” said Denver-based
Jaegers, who recommends buying both stocks. “You have way too many
players.”