An investor in NYSE:LVLT shares filed a lawsuit in effort to halt the proposed 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 firstname.lastname@example.org or call +1(858) 779 – 1554.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NYSE:LVLT stockholders by agreeing to sell Level 3 Communications, Inc too cheaply via an unfair process to enturyLink.
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, plaintiff claims that the proposed consideration NYSE:LVLT shareholders will receive is grossly inadequate and undervalues Level 3 Communications. Indeed, at least one analyst has set the high target price for NYSE:LVLT shares at $71.00 per share. Furthermore, 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.
In addition, the plaintiff alleges that the process is also unfair NYSE:LVLT stockholders. Indeed, 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.
Shares of Level 3 Communications, Inc. (NYSE:LVLT) closed on February 9, 2017 at $57.63 per share.
Those who are current investors in NYSE:LVLT shares have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North – Suite 423
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