IRS APPROVES TAX-FREE STATUS OF SEPARATION OF LEVEL 3 COMMUNICATIONS FROM PETER KIEWIT SONS', INC. CONSTRUCTION BUSINESS
OMAHA, NEBRASKA, March 5, 1998 – Level 3 Communications, Inc. today announced that its parent company, Peter Kiewit Sons', Inc. (PKS) has received a ruling from the Internal Revenue Service (IRS) that the proposed stock exchange resulting from the separation of PKS' construction and diversified businesses will be tax-free for U.S. federal income tax purposes for both stockholders and the company. The company will also receive an opinion from its tax counsel that the proposed distribution of Class R Stock by the company to Class C Stockholders will also be tax-free.
Accordingly, the company expects to make the exchange and complete the separation of the businesses on March 31, 1998. The exchange will not affect outstanding Class D Stock, the value of which is linked to the operations of Level 3 Communications (formerly known as Kiewit Diversified Group). Each holder of Class D Stock will retain all Class D Stock held prior to the exchange, and after the exchange, Class D Stock will automatically become the common stock of Level 3 Communications. Peter Kiewit Sons', Inc. (PKS) is a diversified corporation operating throughout North America. The company is a leader in the construction, mining, telecommunications, and energy industries. Corporate headquarters are located in Omaha, Nebraska.
About Level 3 Communications
Level 3 Communications, Inc. (NASDAQ: LVLT), an international communications company, operates one of the largest Internet backbones in the world, connecting 180 markets in 18 countries. The company serves a broad range of wholesale, enterprise and content customers with a comprehensive suite of services including: Internet Protocol (IP) services, broadband transport and infrastructure services, colocation services, voice and voice over IP services, content delivery and media distribution services. These services provide the building blocks to enable Level 3’s customers to meet their growing demands for advanced communications solutions. The company’s Web address is www.Level3.com.
"Level 3 Communications,” "Level 3," the red 3D brackets and the Level 3 Communications logo are registered service marks of Level 3 Communications, LLC in the United States and/or other countries. Level 3 services are provided by wholly owned subsidiaries of Level 3 Communications, Inc. Any other service, product or company names recited herein may be trademarks or service marks of their respective owners.
Forward-Looking Statement
Some of the statements that we make in this press release are forward looking in nature. These statements are based on management’s current expectations or beliefs. These forward looking statements are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside our control, which could cause actual events to differ materially from those expressed or implied by the statements. The most important factors that could prevent us from achieving our stated goals include, but are not limited to our ability to: successfully integrate acquisitions; increase the volume of traffic on our network; defend our intellectual property and proprietary rights; develop new products and services that meet customer demands and generate acceptable margins; successfully complete commercial testing of new technology and information systems to support new products and services; attract and retain qualified management and other personnel; and meet all of the terms and conditions of our debt obligations. Additional information concerning these and other important factors can be found within Level 3’s filings with the Securities and Exchange Commission. Statements in this press release should be evaluated in light of these important factors. Level 3 is under no obligation to, and expressly disclaims any such obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise.
