Feds OK Level 3/Genuity Deal

Level 3/Genuity transaction receives antitrust clearance from the US Department of Justice and Federal Trade Commission

December 24, 2002

1 Min Read

BROOMFIELD, Colo. -- Level 3 Communications, Inc. (Nasdaq: LVLT - News) announced today that the U.S. Department of Justice and the Federal Trade Commission have approved Level 3's proposed acquisition of substantially all of the assets and operations of Genuity, Inc., a Massachusetts-based provider of communications services. The waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, has expired without action by the agencies in relation to the previously announced purchase agreement between Genuity and Level 3. Such governmental clearance is required for certain transactions in the United States and was one of the closing conditions of the Level 3-Genuity transaction. Under the agreement, Level 3 will pay up to $242 million in cash and assume a significant portion of Genuity's existing long-term operating agreements to acquire substantially all of Genuity's assets and operations. To facilitate the transaction, Genuity has filed voluntary petitions for reorganization under Chapter 11 of the Bankruptcy Code. Level 3's cash consideration at closing could be reduced subject to certain adjustments. Closing is expected to occur during the first quarter of 2003. Consummation of the transaction remains subject to additional regulatory approvals and approval of the bankruptcy court, as well as other customary closing conditions. Level 3 Communications Inc. Genuity Inc.

Subscribe and receive the latest news from the industry.
Join 62,000+ members. Yes it's completely free.

You May Also Like