Level 3 Communications (LVLT) completed the acquisition of Global Crossing on October 4, 2011 and announced plans to transfer the listing of its common stock to the New York Stock Exchange NYSE which occurred on October 20, 2011. In conjunction with listing on NYSE, the company affected a 1-for-15 reverse stock split of the Level 3 common stock.
The reverse stock split has been approved by shareholders since 2005. The proposal allowed four possible reverse stock split ratios: 1-for-5, 1-for-10, 1-for-15 and 1-for-20. The Board chose 1-for-15.
The purpose for a reverse stock split as listed in LVLT SEC filings are:
- The purpose of implementing a reverse stock split would be to attempt to increase the per share trading value of our common stock to one that is more typical of the share prices of other widely owned public companies. Our Board intends to effect the proposed reverse stock split only if the implementation of a reverse stock split is determined by the Board to be in the best interest of Level 3 and our stockholders.