Investors pumping $500 million into broadband operator

BROOMFIELD, Colo. -- Billionaire Warren Buffett, known for investing in low-tech businesses such as Coca-Cola Co. and underwear maker Fruit of the Loom, agreed with two partners to pump $500 million into fiber-optic network operator Level 3 Communications Inc.

Level 3 and companies such as Global Crossing Ltd., which is operating under bankruptcy protection, spent billions building networks in anticipation of a surge in demand for phone and data traffic that never materialized. Buffett, who has avoided Internet stocks in the past, said in a statement that he thinks Level 3 can capitalize on its rivals' difficulties.

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