Wall St Journal: CenturyLink, Level 3 Come to Terms

CenturyLink to Buy Level 3 Communications for $25 Billion

By Joshua Jamerson

CenturyLink Inc. said Monday that it reached a cash-and-stock deal to buy Level 3 Communications Inc. for roughly $25 billion, a marriage that would give the communications companies more heft to weather a competitive landscape.

Shares of Level 3 rose 8% to $58.41 in premarket trading, while shares of CenturyLink slipped 0.7% to $67.

Level 3 runs one of the largest internet backbones in the world but has turned its focus increasingly to small and midsize business in an attempt to reverse slowing sales growth in its core business. CenturyLink, traditionally a rural local-phone-service provider, has sought to upgrade its network with fiber-optic lines in a bid to compete with AT&T Inc., Verizon Communications Inc. and rivals in the cable industry.

Under the deal’s terms, CenturyLink agreed to swap $26.50 in cash and 1.4286 CenturyLink share for each share of Level 3. The company said the deal was worth $34 billion, including debt, and is expected to close by the third quarter of 2017.

CenturyLink Chief Executive Glen Post will lead the combined company, and Level 3’s chief financial officer, Sunit Patel, will serve as financial chief of the combined firm.

The chairman of CenturyLink’s board at the time of the closing will continue to serve as chairman of the combined company. CenturyLink has agreed to appoint four Level 3 board members at closing.

The combined company will be based in Monroe, La., and will maintain a significant presence in Colorado and the Denver metropolitan area.

Advertisements

3 Responses to “Wall St Journal: CenturyLink, Level 3 Come to Terms”

  1. hardtac Says:

    well done…local media seems to be lost on reporting this story…as well as elected officials…

  2. Anonymous Says:

    Wonder were that old Fowler guy is,I kind of miss him

  3. Don Brown Says:

    How long will it be before they are in Denver?

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: