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To: Dale Baker who wrote (30462)	7/8/2002 8:58:02 AM
From: Dale Baker	Read Replies (1) \| Respond to of 118717

Level 3 Soars on Buffett Anointment By TSC Staff 07/08/2002 08:32 AM EDT Three investors including Warren Buffett's Berkshire Hathaway (BRK:AMEX - news - commentary - research - analysis) agreed invest $500 million of Level 3 Communications (LVLT:Nasdaq - news - commentary - research - analysis) convertible notes, evidently to fund acquisitions by the network provider. Berkshire will buy $100 million of the notes, while Memphis, Tenn.,-based Southeastern Asset Management's Longleaf Partners Funds will buy $300 million and Baltimore -based Legg Mason Funds Management, Level 3's second largest shareholder, will buy $100 million. Level 3 soared 63% to $4.70 in premarket Instinet trading on the news. Broomfield, Colo.,-based Level 3 owns an 18,500-mile worldwide network of fiber optics which it markets mainly wholesale to about 2, 000 customers, including regional Bell carriers, large Internet service providers and cable companies. Level 3, which Buffett described as being possessed of both liquid resources and strong financial backing, apparently plans to use the money for acquisitions. "It is widely recognized that the telecommunications industry is going through a period of unprecedented turmoil," said James Q. Crowe, Level 3's chief executive. "At the same time, however, the ongoing shakeout is creating extraordinary opportunities, as telecommunications companies, their network assets and customer bases become available. We are fortunate to have both network management expertise and financial dry powder, which will allow us to continue pursuing opportunities that create value for our stockholders."