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M&A Integration Woes Sink Level 3(LVLT)


Cowen’s Tom Watts today downgraded his rating on Level 3 Communications (LVLT) to Neutral from Outperform, noting that the company is taking longer than expected to integrate its recent acquisitions. (Among the company’s recent deals: the $45 million acquisition of Servecast in July, the $135 million purchase of the content delivery network assets of Savvis in January, and the $744 million purchase of Broadwing, also in January.)

“Customers continue to experience provisioning issues, suggesting LVLT’s acquisition integration challenges are continuing,” he writes.

He adds that “LVLT will have difficulty accelerating revenue growth as planned.”

There are a few more details on the Tech Trader Daily blog at Barrons:
http://blogs.barrons.com/techtraderdaily/2007/10/17/level-3-cowen-downgrades-on-merger-integration-issues/

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