The Rights Plan is designed to deal with the serious problem of unilateral actions by hostile acquirers which are calculated to deprive the Company's Board of Directors and its stockholders of their ability to determine the destiny of the Company. The Rights generally will be exercisable and transferable apart from the Common Stock only if a person or group acquires beneficial ownership of 15 percent or more of the Common Stock or commences a tender or exchange offer upon consummation of which such person or group would beneficially own 15 percent or more of the Common Stock. In addition, if, after any person has become a 15 percent or more stockholder, the Company is involved in a merger or other business combination transaction with another person in which its Common Stock is changed or converted, or sells 50 percent or more of its assets or earning power to another person, each Right will entitle its holder to purchase, at the Right's then-current exercise price, shares of common stock of such other person having a value of twice the Right's exercise price. Details of the Stockholder Rights Plan are outlined in a summary of the Rights Plan, which will be mailed to stockholders. To provide service in the interim, Level 3 has signed an agreement to lease capacity on a national network over which it will be able to offer advanced IP-based services in selected cities beginning in the third quarter of 1998.
Plans also call for the company to expand internationally.
The statements made by Level 3 in this press release may be forward looking in nature. Actual results may differ materially from those projected in forward looking statements. Additional information concerning these and other potential important factors can be found within Level 3's filings with the U.S. Securities and Exchange Commission. Statements in this release should be evaluated in light of these important factors. Inc. All rights reserved.