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Southeastern Asset Management Increases Stake in TW Telecom by 40 Percent

July 10, 2014 | About:
Holly LaFon

Holly LaFon

255 followers
Southeastern Asset Management, where Mason Hawkins (Trades, Portfolio) is chairman of the board and CEO, enlarged its position in TW Telecom Inc. (TWTC) for the first time after selling it down quarterly since the second quarter of 2011, according to GuruFocus Real Time Picks. The firm holds 15,201,344 shares after making the 40.3% increase on July 10.

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TWTC’s price closed at $40.78 on July 10 after climbing 34% since the start of the year. At this price, the cost of Southeastern’s 4,366,541 new shares totaled around $178.1 million.

TWTC is a data, Internet and voice networking solutions company catering to large U.S. corporations. On June 16, the company announced that it would be acquired by Level 3 Communications Inc. (LVLT) for $40.86 per share. Under the agreement TWTC shareholders would receive $10 in cash and 0.7 shares of Level 3 common stock for each share of tw telecom they hold.

News of the acquisition sent the stock up about 28% in from June 12 to June 18.

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Other gurus who own the stock include Steven Cohen (Trades, Portfolio), who reduced his position by 96.4% in the first quarter; George Soros (Trades, Portfolio), who increased his y 259.1% in fourth quarter 2013; and Jim Simons (Trades, Portfolio), who increased his by 24.2% in third quarter 2013. Ray Dalio (Trades, Portfolio) eliminated his position in the first quarter.

Southeastern has an approximate 159% gain on its average buy price of around $16 per share for the company, which it began acquiring before the second quarter of 2009, when the share price averaged $10.

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