Tech billionaire bails out Level 3

NEWS Billionaire Warren Buffett has joined a group of investors eager to throw a $500m lifeline to struggling network operator Level 3 Communications. Buffett's investment venture Berkshire Hathaway has agreed with Longleaf Partners Funding and Legg Mason to buy a nine per cent convertible bond due in 2012 even though Level 3's share price has dropped 42 per cent this year. In a statement, Buffett justified the investment by claiming the company is well equipped to seize important opportunities to develop its business. Longleaf will invest $300m, while Berkshire Hathaway and Legg Mason will invest $100m each. Level 3chairman Walter Scott Jnr is also a director of Buffett's Berkshire Hathaway.