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Technology Stocks : (LVLT) - Level 3 Communications -- Ignore unavailable to you. Want to Upgrade?

To: Microfiber who wrote (483)	3/23/1998 9:29:00 AM
From: Farnam	Respond to of 3873

Your estimate of 10.25 million additional LVLT shares resulting from the conversion by C shareholders of their stock into D is grossly too high. The PKS Board limited C conversions in the 1997 conversion period to 3,000,000 shares. Given relative 1997 formula values and 1997 performance, at most the C shares would be convertible at 1:1. It is likely that the conversion ratio will be less than 1:1. In addition, the conversion was effective on 1/1/98. Therefore, the stated shares outstanding of 147 million as of 3/18/98 includes these shares. It is true that the practice has been to issue certificates in January for a substantial portion of the converted shares, based on an estimate of final numbers, with a "true-up" in April, after the 10-K is filed. The 10-K must be filed by 3/31/98. It is fair to say that there may be a few senior level retirees who choose to sell some or all of their LVLT to diversify their portfolio. It is impossible to know how many shares this might represent.

To: Microfiber who wrote (483)	3/23/1998 10:14:00 AM
From: Farnam	Respond to of 3873

IGNORE MY PREVIOUS POST! I apologize for my previous post. I obviously forgot about the 5:1 split. Also, as I now recall, the company practice is to issue a check in January for declared dividends on shares to be issued upon conversion, based on an estimate with a true-up based on final shares in April. Your estimate of 10.25 million shares is probably close. It is true that this will all be finalized by 3/31/98 when the 10-K is filed. Stock certificates should be distributed by mid-April.