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To: flint who wrote (5)	11/6/2001 10:36:50 AM
From: flint	Respond to of 9

Jesselovechild - Yahoo LVLT - Reason for the need of creditabilty. On September 29, 2001 Jesselovechild felt the need to claim he is close personal friends with LVLT board members. He even went on vacation with one. Been in the houses of two of them. Why? This rumor did not take. Maybe next time. Should someone so personally involved with the Board of Directors be posting theories on take-overs? messages.yahoo.com A theory by: jesseslovechild 09/27/01 09:46 pm Msg: 119198 of 132528 The posters have been speculating of late concerning the debt buyback. In the face of economic turmoil, a meltdown in the telecom sector and their customers (some big) going bankrupt, Level 3 decides to use some its precious cash to buy back debt. Some promulgated reasons have been a) they're real confident about business prospects so they can use cash and still hit CFBE, b) business prospects are sour so capex is cut and the network is scaled down, c) non-core assets are in the process of being liquidated and were never considered in the CFBE analysis, thus freeing up cash to do the buyback. Now the Jesse theory - a takeover is in the works. Verizon, MSFT or some other LARGE customer with significant amounts of cash and/or borrowing power signs a deal to purchase the EXISTING enterprise (no additional buildout necessary) for $12 Billion plus cash on hand. All the LVLT boys are banking on the equity. At the $12B price with $8B debt, the equity piece is $10/share (assuming roughly 400 mill.shs outstanding - after all, the OSOs immediately vest on change of control). If they take $1.5B debt out of the equation, the equity piece is $13.75/share. Liquidating non-core and using some more cash to do a follow-on Dutch auction in 60 days for $2B face, you're at $16.25/share. The deal closes before year-end at the enterprise price, Jim buys back his 3M shares from Walter and makes a a spread of $30 Million, plus $146M for balance of shares, plus OSOs, Walter and all the other Kiewit guys who didn't leverage with a basis of $2.50 make a killing. The buyer gets an operating, state-of-the-art network at cost. Just a theory, Jesse doesn't know shit. Just ask Slander and lindalovelace.