Hutchison linked again to Global Crossing


Hutchison is controlled by Hong Kong's richest man, billionaire Li Ka-Shing

Staff and reports

HONG KONG, China -- Hong Kong-based conglomerate Hutchison Whampoa is preparing another bid for failed U.S. communications company Global Crossing, according to reports Friday.

But Hutchison spokeswoman Laura Cheung played down the reports, telling CNN that it was just "market speculation."

"So far, we haven't submitted any bid. But we like to keep our options open," she said.

Hutchison is controlled by Hong Kong tycoon Li Ka-shing, Asia's richest man.

The possible fresh bid comes after Hutchison and Singapore Technologies Telemedia (STT) abandoned in May a joint $750 million bid for 79 percent of Global Crossing, which filed for Chapter 11 bankruptcy protection in January.

Keeping options open

It is not clear whether state-owned STT would join Hutchison in any new bid, with a spokeswoman for STT telling the Wall Street Journal it was keeping its options open.

Only last month STT said it would not submit a new bid for the company, citing Global Crossing's submission of a reorganization plan to the bankruptcy court.

Reuters news service reports that other participants in the auction for Global Crossing include Level 3 Communications, a joint bid from Gores Technology and Platinum Equity, and a bid from former Global Crossing executive David Walsh, backed by Bank One Corp.

Earlier in the week Global Crossing moved the deadline for bids from Wednesday to Friday, with the auction to take place that day at the offices of Weil, Gotshal and Manges, Global Crossing's law firm.

The earlier joint bid from Hutchison and STT stalled when Global Crossing's banks and creditors could not agree on a purchase price with the companies.

Since then, however, the New York Times reports a source close to the bidding process as saying Hutchison "kissed and made up with the banks."

Asia GC also attracting bids

Global Crossing, which has a fiber-optic network linking 200 cities in 27 countries, filed for bankruptcy in January after accumulating debts of $12 billion.

Since then, two federal investigations into the company's accounting have been launched in the United States.

The company also owns 59 percent of Asia Global Crossing, which is also being looked at as an acquisition target by various firms, with Purple Communications and China Netcom the leading bidders.

Hutchison recently hosed down speculation that it would bid for Asia Global Crossing.