Monday, April 11, 2011

Level 3 (LVLT) Surprises with $3 Billion (GLBC) Deal

Shares of Level 3 Communications Inc. (NASDAQ:LVLT) and Global Crossing Ltd. (NASDAQ:GLBC) soared on Monday as Level 3 announced it was acquiring Global for $3 billion.

The deal values Global Crossing (GLBC) at $23.04 a share, or a 56% premium over the company’s closing price on Friday.

After the close of the deal, the newly combined companies, which operate fiber optic networks, will serve 70 countries.

Shareholders of Global Crossing will receive 16 shares of Level 3 stock for each share of Global Crossing’s stock. The deal is expected to close before the end of 2011.

Level 3 was trading at $1.605, gaining $0.16, or 11.46 percent, as of 11:54 AM EDT. Global Crossing Ltd. was trading at $23.23, up $8.43, or 56.96 percent.

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