An investigation for investors in NYSE:LVLT shares was announced concerning whether the takeover of Level 3 Communications, Inc. by CenturyLink for a value of $66.50 per share is unfair to NYSE:LVLT stockholders.
Investors who purchased shares of Level 3 Communications, Inc. (NYSE:LVLT) and currently hold any of those NYSE:LVLT shares have certain options and should contact the Shareholders Foundation at email@example.com or call +1(858) 779 – 1554.
The investigation by a law firm concerns whether certain officers and directors of Level 3 Communications, Inc. breached their fiduciary duties owed to NYSE:LVLT investors in connection with the proposed acquisition.
On October 31, 2016, CenturyLink (NYSE: CTL) and Level 3 Communications, Inc. (NYSE:LVLT) announced that their Boards of Directors have unanimously approved a merger agreement under which CenturyLink will acquire Level 3 Communications, Inc. (NYSE:LVLT) in a cash and stock transaction valued at approximately $34 billion, including the assumption of debt. Under terms of the agreement, Level 3 shareholders will receive $26.50 per share in cash and a fixed exchange ratio of 1.4286 shares of CenturyLink stock for each Level 3 share they own, which implies a purchase price of $66.50 per Level 3 share (based on a CenturyLink $28.00 per share reference price).
However, given that at least one analyst has set the high target price for NYSE:LVLT shares at $71.00 per share, the investigation concerns whether the offer is unfair to NYSE:LVLT stockholders.
In addition, given that CenturyLink has already entered into a voting agreement with STT Crossing (a wholly owned subsidiary of ST Telemedia), holder of approximately 18 percent of Level 3’s outstanding common stock, pursuant to which it will vote its Level 3 shares in favor of the transaction, the investigation concerns whether the Level 3 Communications Board of Directors undertook an adequate sales process, adequately shopped the company before entering into the transaction, maximized shareholder value by negotiating the best price, and acted in the shareholders’ best interests in connection with the proposed sale.
Level 3 Communications, Inc. reported that its annual total Revenue rose from $6.77 billion in 2014 to $8.22 billion in 2015 and that its Net Income increased from $314 million to over $3.43 billion.
Shares of Level 3 Communications, Inc. (NYSE:LVLT0 closed on November 7, 2016 at $51.93 per share.
Those who are current investors in NYSE:LVLT shares have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
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