Leucadia National Corporation announced a deal to acquire outstanding shares in WilTel Communications at a 13.3% premium to WilTel’s stock price, based on the respective closing prices of the common stock of Leucadia ($37.56 per share) and WilTel ($14.06 per share) on 11-August-2003. At this exchange ratio, if all of the publicly held WilTel shares are acquired by Leucadia, the former public stockholders of WilTel would own approximately 15.8% of Leucadia. Leucadia currently holds a 47.4% interest in WilTel. Following the acquisition, WilTel would become a wholly owned subsidiary of Leucadia.
http://www.wiltelcommunications.com/
- In October 2002, Williams Communications emerged from Chapter 11 proceedings and changed its name back to WilTel Communications Group, a Nevada corporation. The company emerged with a new $375 million credit facility and no other substantial debt obligations other than those related to its headquarters building. Previous shares of WCG stock were cancelled. The company then issued 50,000,000 WilTel Communications shares for distribution, approximately 54% of which were issued for distribution to unsecured creditors and 44% of which were issued to Leucadia National Corporation, which invested $150 million in the company and purchased the claims of The Williams Companies for $180 million. Separately, the company announced that Howard Janzen has resigned as president, CEO and as a director.
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In January 2003, WilTel announced a deal to supply SBC Communications with 10 Gbps OC-192c transport for building out its national IP network. WilTel described the contract as the largest in its history.
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Leucadia National Corporation is a holding company engaged in a variety of businesses, including telecommunications (principally through its 47.4% interest in WilTel), banking and lending (principally through American Investment Bank, N.A.), manufacturing (through its Plastics Division), real estate activities, winery operations, development of a copper mine (through its 72.8% interest in MK Gold Company) and property and casualty reinsurance.