Level 3 Communications: Is It Time For A Change In Leadership?


When Level 3 Communications (LVLT) entered into a definitive agreement under which Level 3 Communications would acquire Global Crossing in a tax-free, stock-for-stock transaction on April 11, 2011, expectations were high.  The stock jumped 18% to a split adjusted $25.5 on the announcement.  The stock went on to touch $40.00 in July.

LVLT has been bleeding cash its entire history (see below), accumulated massive debt (over $8 billion today) and have not been able to grow the top line organically.  The acquisition sparked hopes that LVLT would now have enough mass to turn things around and kick start top line growth.  Past acquisitions have proved problematic but this time would be different.

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, which occurred on October 20. In conjunction with listing on NYSE, the company affected a 1-for-15 reverse stock split of the Level 3 common stock.  …….  Read the full article at SA

Advertisements

About IIEX

Click "About" in the menu at the top for more information about the author. We also have a page at "Seeking Alpha" ( http://seekingalpha.com/author/david-klein ). Please Click on and read the "Disclaimer" in the menu at the top. Have a question? Contact us at iiex@live.com.
This entry was posted in LVLT, Stocks and tagged , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s