CenturyLink shares rise after Corvex reveals 5.5% stake

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Keith Meister, chief investment officer at Corvex, said on Monday that the hedge fund has taken a 5.5 per cent stake in CenturyLink amid optimism over its “truly transformative” deal to buy Level 3 Communications.

Mr Meister’s remarks at the annual Sohn Conference in New York sent shares in CenturyLink, a telecom, up by about 3 per cent in mid-day trading.

CenturyLink unveiled plans last year to buy Level 3, which runs infrastructure that lets businesses connect to the internet, and plans to close the deal this year.

Mr Meister said the deal will be a “game changer” for CenturyLink since it will provide it with a growing asset, that secures its dividend, and is accretive to cash-flow.

Corvex owns 30m shares, worth 5.5 per cent of the company, making it the hedge fund’s “biggest position”, Mr Meister said.

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