Level 3 and Global Crossing Get Stockholders' Blessing for Merger
Level 3 Communications (NAS: LVLT) cleared another hurdle in its quest to add Global Crossing (NAS: GLBC) to its service and network arsenal as the stockholders of both service providers, in separate special meetings, voted to approve the acquisition.
During Global Crossing's shareholder meeting, 99.8 percent of the Global Crossing shares voted to approve the deal between the two service providers.
Likewise, Level 3 said that 99.6 percent of the Level 3 shares voting at their meeting agreed to issue shares of Level 3 common stock to Global Crossing shareholders, while 85.2 percent of the Level 3 shares outstanding were voted in favor of the proposal to approve the adoption of the Level 3 charter amendment.
James Q. Crowe, CEO of Level 3, said in a statement that "the combination of our two companies will create immediate and long-term value for our stockholders and customers" and that they will "continue to work to obtain the requisite regulatory approvals needed to close the transaction and begin the process of integrating the companies to realize the synergies and opportunities expected from the transaction."
Despite some recent opposition from competitor XO Communications (OTC BB: XOHO), which argued in an FCC filing that the combination will give the new company an unfair advantage and cause service disruptions, Level 3 and Global Crossing maintain they are on track to complete the deal by the end of this year.
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