(Telecompaper) US operator CenturyLink is seeking to acquire Rackspace Hosting to further expand into cloud-computing services, people familiar with the situation told Bloomberg. CenturyLink has discussed the idea with Rackspace, which last month said it was still conducting an internal review of its strategic options. Rackspace had a stock-market valuation of USD 5.33 billion at the end of last week. CenturyLink would reportedly pay n a combination of cash and its own shares. Rackspace hired Morgan Stanley earlier this year to seek strategic options and explore ways to expand the business after the company said it had been approached by multiple groups interested in a partnership or acquisition.