May 27, 2002 : Global Crossing Purchase Talks Ended
📅 - Hutchinson Whampoa (hutchinson-whampoa.com) and Singapore Technologies Telemedia Pte. Ltd. (stt.st.com.sg) announced on Saturday that they have ended discussions to purchase bankrupt telecommunications company Global Crossing (globalcrossing.com) after months of unsuccessful negotiations.
The companies say that ?both ST Telemedia and HWL have invested a significant amount of time, effort and resources in trying to reach an agreement with Global Crossing's creditors and banks.? And while discussions carried on for five months, certain differences remained, between the investors and Global Crossing's banks and creditors, regarding the terms of the transaction.
Hutchinson and STT originally bid $750 million for 79 percent of the bankrupt company's assets, but creditors said the price was too low, claiming that Global Crossing has about $22.4 billion in assets.
Talks between Global Crossing and the two Asian bidders had already been extended past an initial May 21 deadline, but the added time failed to solidify a deal. The bidders refused to raise their price due to the lack of other serious suitors.
Global Crossing says it will continue discussions with other potential buyers as the process moves forward.
"While we are disappointed that an agreement could not be reached at this time, we look forward to working with Hutchison Whampoa and Singapore Technologies Telemedia as the auction approaches,? says Global Crossing CEO John Legere.
The companies say that ?both ST Telemedia and HWL have invested a significant amount of time, effort and resources in trying to reach an agreement with Global Crossing's creditors and banks.? And while discussions carried on for five months, certain differences remained, between the investors and Global Crossing's banks and creditors, regarding the terms of the transaction.
Hutchinson and STT originally bid $750 million for 79 percent of the bankrupt company's assets, but creditors said the price was too low, claiming that Global Crossing has about $22.4 billion in assets.
Talks between Global Crossing and the two Asian bidders had already been extended past an initial May 21 deadline, but the added time failed to solidify a deal. The bidders refused to raise their price due to the lack of other serious suitors.
Global Crossing says it will continue discussions with other potential buyers as the process moves forward.
"While we are disappointed that an agreement could not be reached at this time, we look forward to working with Hutchison Whampoa and Singapore Technologies Telemedia as the auction approaches,? says Global Crossing CEO John Legere.
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