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To: Bob Biersack who wrote (59387)	7/8/2002 7:00:08 AM
From: puborectalis	Read Replies (1) \| Respond to of 208838

Buffett goes telecom? Billionaire investor part of a group backing Level 3 expansion moves. July 8, 2002: 5:56 AM EDT NEW YORK (CNN/Money) - Billionaire investor Warren Buffett is backing an expansion move by a small telecom company. Buffett, working through his Berkshire Hathaway Inc. investment unit, is part of a group of investors providing $500 million in cash to Level 3 Communications, a fiber-optic carrier. Level 3 said it plans to use the money for acquisitions. The move is unusual for Buffett, who has long had a reputation for avoiding technology oriented investments. The cash infusion is being made through a debt offering. Level 3 is selling $500 million of 10-year convertible notes yielding 9 percent to Berkshire Hathaway and two institutions, Longleaf Partner Funds and Legg Mason Inc. Longleaf will buy $300 million of the notes. Berkshire Hathaway Inc. and Legg Mason will each take on $100 million. The notes are convertible into common stock at the option of the holder. The transaction is expected to close Monday. Level 3 said in a press release it will use the funds for potential acquisitions, capital expenditures and working capital. Level 3 (LVLT: Research, Estimates) shares rose 32 cents to $2.89 in Friday trading. Berkshire Hathaway (BRK.B: Research, Estimates)'s B-class shares, its more actively traded equity, gained $39 to $2,254.