With the increasing number of entrants making their way into the telecommunications industry, acquisitions and mergers have become quite a usual fare. Enterprises often acquire other companies to expand their market reach, and in turn offer their stocks to the other company. Similarly, some of the companies agree to merge their assets into other entities for raising funds that can be utilized as capital for further initiatives.
Level 3 Communications (News - Alert), Inc., a provider of IP-based communications services to enterprise, content, government and wholesale customers has announced that STT Crossing, a wholly owned subsidiary of Singapore Technologies Telemedia or ‘ST Telemedia’ has expressed its assurance in Level 3 and has no plans to divest its shares in the company. The announcement has been made in reference to a filing made by Level 3 with the U.S. Securities and Exchange Commission on Nov. 18, 2011. It covered the shares of Level 3 common stock held by STT Crossing, which the latter had received upon the closing of the acquisition of Global Crossing (News - Alert) Limited in exchange for the Global Crossing shares that STT Crossing held.
Based in Singapore, ST Telemedia is an information-communications company with investments in the Asia-Pacific region, Europe and the Americas. It primarily is engaged in a number of sectors such as quad-play services, mobile communications and global IP/ data services.
Leveraging a robust, scalable and secure network, Level 3 offers integrated Internet Protocol or ‘IP’ products consisting of converged, data, voice, video and managed solutions that boost the growth of the enterprises. It owns fiber networks spanning across over 45 countries in three continents that has been extensively connected under the sea water. Using these networks, the company operates a global services platform to offer connectivity to its customers.
“As a significant owner with board of directors’ representation, STT Crossing considers Level 3 as a strategic investment in our portfolio,” commented Lee Theng Kiat, president and chief executive officer at ST Telemedia. “We have confidence in Level 3 and have no current intent to divest our shares in Level 3,” added Kiat.
Earlier this month, Level 3 Communications, Inc. announced it has expanded its network capacity and suite of services in Mexico to address growing broadband demand and to better serve global enterprises and carriers doing business in Mexico. Through its locally licensed affiliate in Mexico, Level 3 now offers a range of services including EtherSphere Wide Area Network or ‘WAN’ transport services, Internet Protocol Virtual Private Network or ‘IP VPN,’ Wavelength Services, Private Line, Dedicated Internet Access and High Speed IP service and Ethernet local access service.
Arvind Arora is a contributing editor for TMCnet. To read more of Arvind's articles, please visit his columnist page.
Edited by Stefanie Mosca