Oppenheimer Doesn’t See Level 3 (LVLT) Placing an Offer on Paetec (PAET)

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Oppenheimer analyst Timothy Horan believes that it is highly unlikely that Level 3 (Nasdaq: LVLT) will place an a competing offer for Paetec (Nasdaq: PAET), given that the company is still in the process of integrating its merger.

The firm also highlights that Paetec shareholders prefer dividends, which will be unlikely if LVLT acquires the company. Oppenheimer does anticipate that the industry will begin to consolidate and sees an Akamai (Nasdaq: AKAM) acquisition by telecommunications company or IBM (NYSE: IBM), but doesn't forecast it anytime soon.

Oppenheimer currently has a Market Perform rating on shares of LVLT. Shares of LVLT are trading up 2.17 percent on the day to $1.65.

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