LUK is done with WilTel, bought by Level3

This one is a complete "fourth and long" for Leucadia. They bought up WilTel thinking that they could put something together in the Telecom space. Didn't happen. What makes WilTel interesting? It was the OLD SBC. The OLD SBC - WilTel's largest customer, has stated that it plans on migrated the services it's getting from WilTel to the new "ATT". LUK read the writing on the wall. With that SBC contract, the company is done!

"Level 3 estimates WilTel will contribute 1.5-1.6 billion in revenue in 2006....but that amount is expected to fall to $600 million in 2008 as SBC traffic merges with AT&T"

Here's the other interesting part that should be noted from the above article. L3 didn't assume all of WilTel's debt..."Level 3 will not acquire certain WilTel assets and liabilities, such as WilTel's headquarters or the assumption of any of WiolTel's outstanding debt or mortgages obligations, under the terms of the deal."

Looks like Leucadia just gave up on WilTel, and Level 3 has come in to assume the assets of the core network for a song.

It's not like Leucadia was an obvious telecom player:
"The company provides physical, occupational, speech, and respiratory therapy services, as well as healthcare staffing services and Medicare consulting services. Leucadia National also manufactures and markets lightweight plastic netting used for various purposes, including building and construction, erosion control, agriculture, packaging, carpet padding, filtration, and consumer products."

Adam "voiploser" Uzelac