economy
CenturyLink buy Level 3 Communications for $ 24 billion.
(Reuters) - US group CenturyLink announced the purchase of Level 3 Communications, in a deal worth about 24 billion dollars which aims to expand fiber optic network and compete with telecom rivals like AT & T and Verizon.
The agreement-based cash and stock should be completed in the third quarter of 2017. CenturyLink wants to create a formidable telephone corporation with corporate clients seeking increased bandwidth and faster networks for data traffic.
"We have become a much larger and more focused on corporate business customers," said CEO of CenturyLink, Glen Post, after the announcement of the agreement. Post, who works at CenturyLink since 1976, will lead the combined company, while the chief financial officer of Level 3, Sunit Patel, will hold the same position in the combined company.
The offer of about $ 66.50 per share embeds a premium of 42 percent over the stock's closing price of Level 3 on Wednesday, before the emergence of information about a potential deal between the two companies.
The CenturyLink operates more than 55 data processing centers in North America, Europe and Asia and provides broadband, voice, video and data. Level 3 narrowly avoided collapse in the early 2000. The company received an injection of $ 500 million in 2002 from investors that included Warren Buffett.
(By Malathi Nayak, Narottam Medhora and Supantha Mukherjee in Bangalore; Additional reporting by Lauren Hirsch in New York)
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