Level 3, Global Crossing shareholders OK deal
Global Crossing shareholders approve $2B acquisition by Level 3; expected close by end of year
On Thursday August 4, 2011, 4:52 pm EDT
NEW YORK (AP) -- Shareholders of long-haul data carriers Level 3 Communications Inc. and Global Crossing Ltd. have separately approved Level 3's $2.9 billion purchase of Global Crossing, the companies said Thursday.
The deal was announced in April and is awaiting antitrust approval. The companies hope to close the deal before the end of the year.
Level 3 is based in Broomfield, Colo. Global Crossing is based in Bermuda, but its largest shareholder is Singapore Technologies Telemedia, which has approved the deal. ST Telemedia is in turn owned by the investment arm of the Singapore government.
Level 3's stock closed Thursday at $2.16, down 5 cents, or 2.3 percent. Global Crossing's stock closed at $33.71, down $1.35, or 3.9 percent.
Each Global Crossing shareholder would get 16 shares of Level 3 in the deal. The 16 shares are worth $34.56 at Thursday's closing price. Global Crossing's stock price, just below the offering price, indicates that investors expect the deal to close.
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