May 2, 2006
Level 3 Communications, Inc. announces agreement to acquire TelCove, Inc., a privately held telecommunications company, for over $1.24 billion.
On May 1, Willkie client Level 3 Communications, Inc. announced that it has signed a definitive agreement to acquire TelCove, Inc., a privately held telecommunications company, for over $1.24 billion. Under the agreement Level 3 will pay TelCove $637 million in shares of Level 3 common stock, $445 million in cash and $155.5 million in the assumption of debt. The deal provides for Level 3 to acquire over 300 LMDS and 39 GHz licenses covering 90 percent of the U.S. population. Pennsylvania-based TelCove is a leading facilities-based provider of metropolitan and regional communications services including transport, Internet access and voice services, with a network of over 22,000 local and long haul route miles serving 70 markets across the eastern U.S. Level 3, based in Bloomfield, CO, is an international communications and information services company with one of the largest Internet backbones in the world. The deal was handled by partners John D'Alimonte, David Boston, Robert Stebbins and Richard Reinhold; special counsel Kim Walker; and associates Thomas Mark, Andrea Williams, Johanna Ferraro, Christopher Peters and David Rubinsky.
