Mär 5, 2002 : Gores to Make Bid for Global Crossing
📅 - Gores Technology Group (http://www.gores.com), an acquisition groupthat buys the assets of major companies in financial trouble in an attemptto revive them, is planning to bid for bankrupt telecommunications firmGlobal Crossing Ltd (http://www.globalcrossing.com), a source close to the situation said on Sunday, Reuters reported.
Los Angeles-based Gores, whose recent acquisitions include Mattel Inc.'sLearning Co. educational software unit and Hewlett-Packard Co.'s VeriFone,might make the bid as early as this week at the federal Bankruptcy Court inNew York, said the source, who spoke on condition of anonymity.
He did not say how what the deal would be worth, except that it wouldprovide "substantially more value" than a $750 million bid currently beingconsidered from two Asian companies, according to the Reuters report. AGores spokesman would neither confirm or deny if a bid was beingentertained.
Hamilton, Bermuda-based Global Crossing filed for Chapter 11 bankruptcy onJan. 28. The filing listed the operator of a global fiber optictelecommunications network at about $12 billion in debt and $22.4 billion inassets, making it the fourth biggest bankruptcy in U.S. history.
If Gores makes a bid, it would become the third suitor for the company,after Hong Kong's Hutchison Whampoa Ltd. and Singapore TechnologiesTelemedia, both of which hold interests in Global Crossing.
In exchange for $750 million in cash, the companies would get 79 percent ofthe reorganized company. Existing shareholders would receive nothing, whilecreditors would get $300 million, plus $800 million in debt and theremaining 21 percent of the company, according to the Los Angeles Times. Thebid has created controversy because many believe it is worth considerablyless than the company's value.
Los Angeles-based Gores, whose recent acquisitions include Mattel Inc.'sLearning Co. educational software unit and Hewlett-Packard Co.'s VeriFone,might make the bid as early as this week at the federal Bankruptcy Court inNew York, said the source, who spoke on condition of anonymity.
He did not say how what the deal would be worth, except that it wouldprovide "substantially more value" than a $750 million bid currently beingconsidered from two Asian companies, according to the Reuters report. AGores spokesman would neither confirm or deny if a bid was beingentertained.
Hamilton, Bermuda-based Global Crossing filed for Chapter 11 bankruptcy onJan. 28. The filing listed the operator of a global fiber optictelecommunications network at about $12 billion in debt and $22.4 billion inassets, making it the fourth biggest bankruptcy in U.S. history.
If Gores makes a bid, it would become the third suitor for the company,after Hong Kong's Hutchison Whampoa Ltd. and Singapore TechnologiesTelemedia, both of which hold interests in Global Crossing.
In exchange for $750 million in cash, the companies would get 79 percent ofthe reorganized company. Existing shareholders would receive nothing, whilecreditors would get $300 million, plus $800 million in debt and theremaining 21 percent of the company, according to the Los Angeles Times. Thebid has created controversy because many believe it is worth considerablyless than the company's value.
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