Benchmark Discusses Savvis, CenturyTel Merger (SVVS, CTL)

Benchmark Capital is out with a research report on the merger between SAVVIS, Inc. SVVS and CenturyLink, Inc. CTL. In a note to clients, Benchmark writes, "Savvis has agreed to sell to CenturyLink for $40 per Savvis share in cash and stock. Savvis also reported 1Q11 EBITDA nicely above expectations. We believe the deal valuation at 11x 2011E EBITDA looks relatively cheap, especially given Savvis' current operating momentum. We believe there is a potential for a competing bid or sweetener. We maintain our Buy rating and $45 per share price target."