TW Telecom Inc (NASDAQ:TWTC) issued a response to the 13D filing of Corvex Management with the Securities and Exchange Commission (SEC) indicating that the shares of the company are undervalued and it is an attractive investment.
In a statement, the company said that it is committed to creating shareholder value and emphasized that it is well positioned to continue to achieve that objective citing various initiatives including investments in next generation services and infrastructures, share repurchase programs, and other balance sheet activities.
In a rare interview with Harvard Business School that was published online earlier this month, (it has since been taken down) value investor Seth Klarman spoke at length about his investment process, philosophy and the changes value investors have had to overcome during the past decade. Klarman’s hedge fund, the Boston-based Baupost has one of Read More
TW Telecom Inc (TWTC) Revenue Growth
TW Telecom Inc (NASDAQ:TWTC) also pointed out its “long track record of producing long-term, consistent results” including its 34 consecutive quarters of revenue growth, continuing product innovation, and exceptional execution.
The company added that it has a long history of open dialog with investors and anticipates receiving ongoing input from investors such as Corvex Management. The investment management indicated in its filing that it has multiple conversations and meetings with the management of TW Telecom Inc (NASDAQ:TWTC) and discussed its business and strategies.
Corvex Management also plans to conduct further discussions with the management, the board, and other stockholders of TW Telecom (NASDAQ:TWTC) to continue to review alternatives to enhance shareholders value. The investment management firm cited some strategic options such as “improving capital structures and/or capital allocation through increased leverage and stock repurchases, or dividends, M&A, and general corporate strategies.
Corvex Management owns 5.77 percent stake or 8, 667, 424 shares of TW Telecom Inc (NASDAQ:TWTC). Keith Meister serves as the managing partner and chief investment officer of the investment management firm. Meister is a former executive of activist investor, Carl Icahn.
During the Ira Sohn Conference, Meister emphasized that he loves companies that will handle big data communication revolution over the next decade such as TW Telecom Inc (NASDAQ:TWTC) and Level 3 Communications, Inc. (NYSE:LVLT). He projected that both companies might enter M&A transactions. According to him, TWTC is a candidate for acquisition while LVLT might takeover other companies. He also emphasized that the TWTC and LVLT have great assets and scale.
Meister cited that TW Telecom Inc (NASDAQ:TWTC) is stable with 80 percent revenue generated from data carrying. He said that major data companies including Level 3 Communication, Inc. (NYSE:LVLT), Verizon Communications Inc. (NYSE:VZ), CenturyLink, Inc. (NYSE:CTL), Comcast Corporation (NASDAQ:CMCSA) could acquire the company.
He believed that shares of TW Telecom Inc (NASDAQ:TWTC) should be worth around $38 per share.