NEW YORK, Nov. 3, 2016 /PRNewswire/ -- WeissLaw LLP is investigating possible breaches of fiduciary duty and other violations of law by the Board of Directors of Level 3 Communications Inc. ("LVLT" or the "Company") in connection with the proposed acquisition of the Company by CenturyLink Inc. ("CenturyLink"). On October 31, 2016, the Company announced that it had reached a definitive agreement for CenturyLink to acquire all outstanding shares of LVLT in a cash-and-stock transaction valued at approximately $34 billion, inclusive of debt. Under the terms of the agreement, LVLT shareholders will receive $26.80 in cash and 1.4286 shares of CenturyLink for each LVLT share they own. This implies a value of $62.47 per LVLT share based on CenturyLink's November 1 closing price of $24.97.
WeissLaw is investigating whether LVLT's Board acted to maximize shareholder value prior to entering into the agreement. Notably, at least one analyst set a target price of $71.00 per LVLT share, approximately $9.00 above the offer price. Additionally, the Company recently announced positive financial results for the third quarter of fiscal year 2016. It reported net income of $143 million, up from the $1 million reported in the same period of the previous year.
Given these facts, WeissLaw is investigating the Board of Directors' decision to sell LVLT and whether LVLT shareholders will obtain their fair and proportionate share of the Company's continued success and future growth prospects. If you own LVLT shares and would like more information about your rights or our investigation, or if you have information to share with us, please contact Joshua Rubin by telephone at (888) 593-4771 or by email at firstname.lastname@example.org.
WeissLaw LLP has litigated hundreds of stockholder class and derivative actions for violations of corporate and fiduciary duties. We have recovered over a billion dollars for defrauded clients and obtained important corporate governance relief in many of these cases. If you have information or would like legal advice concerning possible corporate wrongdoing (including insider trading, waste of corporate assets, accounting fraud, or materially misleading information), consumer fraud (including false advertising, defective products, or other deceptive business practices), or anti-trust violations, please email us at email@example.com or fill out the form on our website, http://www.weisslawllp.com/contact/report_fraud/.
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SOURCE WeissLaw LLP