More Bids for PAETEC?

At least some investors seem to be expecting additional offers to buy Paetec Holding Corporation, which had seemed to be selling to Windstream Corp.

In a research note, FBR Capital Markets analyst David Dixon said a higher bid for Paetec from from Level 3 Communications would be justified. Such a deal would make "greater strategic sense."

In a broad sense, the bid or bids are part of an on-going consolidation of every part of the communications business. For Windstream, the potential rival bid could spell trouble for that company's hoped-for expansion strategy in the business customer segments.

Paetec shares pop above value of Windstream offer