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

To: SDR-SI who wrote (1155)	7/21/1998 8:18:00 PM
From: Kevin G. O'Neill	Respond to of 3873

Level 3 Gains For Second Day After McCaw Announcement Dow Jones Newswires -- July 21, 1998 interactive.wsj.com!BT07/21++2422!WJ07/21++++95!&time=07/21+16:20 By Tom Locke DENVER (Dow Jones)--Level 3 Communications Inc. (LVLT) shares rose Tuesday for the second straight day after the telecommunications company's announcements Monday of a 2-for-1 stock split and a $700 million deal to provide long-distance network capacity to Internext LLC. Bob Waldman, managing director with Salomon Smith Barney, in New York, attributed the two-day rise to the deal with Internext, which is owned by three companies tied to cellular phone industry pioneer Craig McCaw. They are NextLink Communications Inc. (NXLK), Nextel Communications Inc. (NXTL) and Eagle River Investments LLC. Waldman said because of the McCaw name, the deal adds credibility to Level 3's network plans and focuses attention on the network. He attributed Tuesday's stock-price increase to "just more follow through." Waldman added that the stock split was probably not much of a factor in the stock's rise. He noted that Level 3, which is building its network on Internet technology, has considerable cash and assets and "world-class management." Josh Howell, senior vice president at Level 3, declined to comment specifically on the rise in Level 3 shares. However, he said it is obvious the Monday announcements were well received, and the company continues to be on track with its business plan. Under the Internext deal, Internext will contribute $700 million toward the $2.2 billion cost of Level 3's 15,000-mile fiber-optic network to connect U.S. cities for its long-distance network. That network will be completed by 2000 or early 2001, Howell said. The deal gives Internext 24 fibers of the 96 fibers in the first cable to be laid. Level 3 will have six to eight conduits in which to lay later cables. By 2001, it is also planning to complete local telephone networks in 25 U.S. cities and half a dozen European cities, as well as a 2,000-mile pan-European network. Level 3, which is moving its headquarters to Denver from Omaha, Neb., has about $5 billion in cash and other assets, Howell said, so the Internext deal was a plus. But it wasn't necessary to finance the fiber-optic network project. Level 3's Nasdaq-listed shares gained 7% Monday and rose to a high Tuesday of 83 5/8. The shares closed Tuesday at 83 1/4, up 6 1/2, or 8.5%, on volume of 1.6 million. Average daily volume is 362,700. - Tom Locke; 303-293-9294