Level 3 to Acquire Global Crossing in $1.9 Billion Stock Deal
Level 3 Communications said it has agreed to acquire Global Crossing in an all-stock deal valued at about $1.9 billion. The companies said their combined network will serve a customer set with owned network in more than 50 countries and connections to more than 70 countries. They see the deal generating synergies from network expense savings, operating expense savings and reductions in capital spending. Under the deal, Global Crossing equity holders will receive 16 Level 3 shares for each of their common or preferred shares. That values Global Crossing at $23.04 a share, a 56 percent premium, based on Level 3’s closing price on Friday. Level 3 will also assume about $1.1 billion in debt.