Level 3 Communications Soars, But It’s a Reverse Split

Oct 21, 2011
J. Webster
Comments Off on Level 3 Communications Soars, But It’s a Reverse Split

Damn, if you were a Level 3 Communications share holder and woke up this morning and looked at the stock (LVLT), you might have thought you’d struck it rich. The stock is up over 1,394.19%, going from around a dollar and a half the day before to $23 and change.

However, unfortunately, nobody paid a premium for the company and bought them out, they just did a 1 for 15 reverse split. Sorry to be the bearer of the bad news. But things aren’t all bad. Now that Level 3 trades over $5 a share, and is not near penny stock levels, mutual funds can buy the stock. And, joining the NYSE can only be viewed as good news too.

“We are particularly pleased to be joining the NYSE,” said Sunit Patel, executive vice president and chief financial officer of Level 3. “The NYSE has been an important customer of ours for a number of years and as both organizations expand their global reach, this is a natural and mutually beneficial step for both of us. Our acquisition of Global Crossing enables us to serve the NYSE more broadly over our expanded global footprint. At the same time, the international reach of their platform helps us grow our global investor base.”

In conjunction with its listing on the NYSE, Level 3 implemented a 1-for-15 reverse stock split of its common stock, which took effect at 5 p.m. EDT on Oct. 19, 2011. The reverse stock split automatically combined every 15 shares of issued and outstanding Level 3 common stock into one (1) share of Level 3 common stock without any change in the par value per share.

Full press release is here.

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