Activist Investor Increases His Bet on This High-Yield Stock

One special situation to watch is CenturyLink's (NYSE: CTL) upcoming merger with Level 3 Communications (NYSE: LVLT). As I've previously written, the merger could transform the fortunes of both companies for the better, as both (especially CenturyLink) have been struggling lately. On top of that, activist investor Keith Meister of Corvex Management is involved. Back in May, Meister revealed that Corvex had a 5.5% stake in CenturyLink.

Meister and other CenturyLink investors had a rough August. First, regional telecom stocks sold off after struggling peer Windstream eliminated its dividend on Aug. 3. Then an analyst downgrade of fiber and tower REIT (real estate investment trust) Uniti Group took down regional telecoms again, CenturyLink and Level 3 included. More bad news came Aug. 18, when news reports hinted California regulators could delay the merger beyond the self-imposed deadline of Oct. 31, which is well beyond company guidance of a third-quarter close. Both CenturyLink and Level 3 fell yet again.