DENVER—Level 3 Communications Inc. finance chief Sunit Patel announced plans to resign as soon as a replacement is found, the communications network operator announced Monday.
Level 3’s stock plummeted 11 percent on the news.
Patel, 45, has been seen as one of the key executives keeping Level 3, which Internet services for businesses, running as it acquired seven companies over the past two years.
The move was a “big, big surprise,” and may be an indication that blending all the acquisitions into an efficient operation is progressing more slowly than planned, Janco Partners analyst Donna Jaegers said.
“You can’t fault Sunit for the financial performance … he’s done some fancy dancing. Sunit should get an A-plus,” she said. “I think what they need now is somebody with a lot of experience with integrating a lot of acquisitions.”
Level 3 Chief Executive Officer James Q. Crowe called Patel’s achievements “nothing short of spectacular” and said the company will search for a replacement with both financial and operational management expertise.
“I plan to work hard to convince Sunit to remain with Level 3 in a new role,” Crowe said in a statement. “Whatever Sunit decides to do, I know that he will be a great success.”
Level 3 spokesman Chris Hardman declined additional comment. The company is scheduled to release its third-quarter earnings report Oct. 23.
Patel will remain until his replacement is found, saying he will use the time to consider his options, including those at Level 3. Crowe expects the search to end by the end of the first quarter 2008.
Patel joined Level 3 four years ago after he co-founded Looking Glass Networks Inc., a data transport services company that Level 3 purchased last year. He previously was treasurer of MCI WorldCom.
Level 3’s stock fell 54 cents, or 11 percent, to $4.36 a share in Monday trading.
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