CenturyLink, Level 3 Shareholders Sign Off on Planned Merger
**Editor’s Note: Please click here for a recap of the biggest channel-impacting mergers in January.**
Shareholders of CenturyLink and Level 3 Communications on Thursday overwhelmingly approved all proposals related to the merger of the two companies.
At a special meeting of CenturyLink’s shareholders, more than 96 percent of the votes cast supported the proposal to issue CenturyLink common stock to Level 3 stockholders in connection with the proposed merger. At a separate meeting of Level 3’s stockholders, about 81 percent of Level 3’s outstanding shares of common stock, and nearly 99 percent of the votes cast, were in favor of approving the merger agreement.
The Federal Communications Commission’s decision regarding the deal is pending. Both Frontier Communications and Windstream have asked the FCC to impose conditions if it approves the deal. Windstream said conditions are needed to prevent practices “contrary to the public interest and fair and reasonable competition.”
“The combination of CenturyLink and Level 3 will significantly improve our global network capabilities, creating a company with one of the most robust fiber networks in the world,” said Glen Post III, CenturyLink’s president and CEO. “This expanded network should allow us to bring substantial operational and service benefits to our enterprise customers, as well as an enhanced customer experience.”{ad}
In addition to approvals by shareholders, and state regulatory approvals and clearances in Ohio, Utah and Nevada, the companies also recently received approvals in Georgia and West Virginia, and clearances in Connecticut, Indiana and Louisiana. The two companies continue to expect to receive the remaining state, federal and international approvals in time to complete the merger by Sept. 30.
“We appreciate the strong support from our shareholders for the merger and their recognition of the benefits the combined company will bring,” Post said. “We’re making solid progress with our regulatory approvals and remain optimistic that the process will continue smoothly with the remaining reviews.”
Upon closing of the transaction, CenturyLink shareholders will own about 51 percent and Level 3 stockholders will own about 49 percent of the combined company. The combined company will be headquartered in Monroe, Louisiana, and will maintain a key operational presence in Colorado and the Denver metropolitan area.
