Global Crossing to be auctioned after sale talks fail

May 27, 2002
25 May 2002 -- Hong Kong-based Hutchison Whampoa and government-owned Singapore Technologies Telemedia Pte Ltd have ended talks to buy Bermuda-based Global Crossing Ltd.

25 May 2002 -- Hong Kong-based Hutchison Whampoa and government-owned Singapore Technologies Telemedia Pte Ltd have ended talks to buy Bermuda-based Global Crossing Ltd.

After four months of negotiations the parties failed to reach an agreement on price, despite going past the initial 21 May deadline. Global Crossing filed for Chapter 11 bankruptcy on 28 January in the fourth-largest US insolvency, with USD12.4bn in debt.

The initial bid was USD750m for 79% of its assets, which creditors reckon are worth USD22.4bn, but no other bidders had emerged. However, Global Crossing said it would keep talking with them and other potential investors as it proceeds to an auction of its network.

All bids must be received by a 20 June deadline, and a final auction will be held on 8 July.

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