Savvis Investor FAQ
1. What is the merger?
Effective July 15, 2011, a wholly-owned subsidiary of CenturyLink, Inc. ("CenturyLink") merged with and into SAVVIS, Inc. ("Savvis"), with CenturyLink as the surviving corporation in the merger.
2. When did I receive CenturyLink shares? How many shares did I receive for my Savvis shares?
The merger of CenturyLink and Savvis was completed on July 15, 2011. Under the terms of the merger agreement, each share of Savvis common stock held as of the close of merger was converted into the right to receive (a) $30 in cash and (b) 0.2479 of a share of CenturyLink common stock ( which fraction was calculated using the formula set forth in the merger agreement, by dividing $10.00 by the volume-weighted average trading price of CenturyLink common stock over the thirty-day trading period ending on July 12, 2011 ), with cash to be paid in lieu of any fractional shares.
3. Were fractional shares issued as a result of the merger?
No. Shareholders will receive a check for the cash value of any fractional shares of CenturyLink common stock as soon as practicable after the merger.
4. Do I have to return my certificates?
Yes. In order to receive your cash, CenturyLink common stock, and cash-in-lieu of any fractional shares, you must return those certificates. Also, while future dividends on your CenturyLink shares will accrue without interest, you will not receive those dividends until your exchange is completed.
5. I didn’t receive any stock certificates for my CenturyLink shares. Where are my shares?
CenturyLink uses the Direct Registration System ("DRS") , which provides for electronic direct registration of securities in an investor's name on the books for the transfer agent or issuer, and allows shares to be transferred between a transfer agent and broker electronically . Through DRS, your CenturyLink shares are registered electronically on the books of the corporation in an account maintained by Computershare Trust Company, N.A. ("Computershare"), CenturyLink's transfer agent. Your shares were credited to your account and you will receive a statement evidencing these shares. If you have questions regarding this process, you may contact a Computershare representative toll-free at 800-546-5141. Outside the U.S. and Canada, you can call 781-575-2765.
6. What are the U.S. tax consequences of the transaction?
The cash portion of the consideration will be taxable for federal income tax purposes. The stock portion of the consideration may be taxable upon selling of those shares. Please consult your tax advisor to determine how this effects your tax situation.
7. What is my cost basis?
The receipt of the merger consideration (cash and CenturyLink stock) in exchange for shares of Savvis common stock pursuant to the CenturyLink/Savvis merger was a taxable transaction for United States federal income tax purposes.
A United States holder’s aggregate tax basis in CenturyLink common stock received in the CenturyLink/Savvis merger is equal to the fair market value of the stock ($38.54) as of the effective time of the merger (7/15/2011). The holding period of the CenturyLink common stock received in the merger by Savvis shareholders will begin on the day after the merger.
8. I need to know the price of Savvis stock on a particular date in the past. How do I find that information?
You can find a historical price for Savvis (SVVS) using our Historical Price Look-up tool. Click here