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Rackspace Hosting, Inc. Is Target Of CenturyLink, Inc.

Courtesy of Benzinga.

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Rackspace Hosting, Inc. (NYSE: RAX) is the acquisition target of landline phone company CenturyLink, Inc. (NYSE: CTL), according to a report by Bloomberg news service Monday.

Rackspace jumped more than five percent to $39.43 per share.

Rackspace, a cloud services company with a market capitalization of $5.6 billion, in mid-May said it received buyout offers and hired Morgan Stanley to evaluate the bids and to “explore other alternatives.”

A rumored CenturyLink deal was first reported in July by Brightwire.

CenturyLink, the nation's third-largest telecom with a market capitalization of $23.23 billion, has been developing a could service since at least 2011, when it paid $42.5 billion to acquire hosting company Savvis. It has since made a number of additional acquisitions in the field.

Rumors of the possible sale of Rackspace to Hewlett-Packard Company and International Business Machines Corp. have recently cooled.

Posted-In: News Rumors M&A Intraday Update

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