A delay in the CenturyLink-Level 3 merger is giving investors the jitters.
By Billy Duberstein
Recently, I wrote about a possible delay in the CenturyLink-Level 3 Communications merger, and the accompanying actions taken by activist hedge fund Corvex Management. As the merger is crucial to the future of CenturyLink shareholders, any sort of uncertainty surrounding approval would throw a wrench into the investment thesis for either of these two companies.
Due to increasing competition in the telecom space and a secular decline in many of CenturyLink's legacy businesses (such as copper wire landlines), CenturyLink has continued to post deteriorating operating results as it attempts to invest in future technologies while keeping costs in check in preparation for the merger.