BusinessBusiness RecoveryGlobal Crossing takeover collapses

Global Crossing takeover collapses

Bankrupt telco Global Crossing conceded yesterday (Sunday) that its proposed takeover by Hutchison Whampoa and Singapore Technologies Telemedia has collapsed, but the company said it was involved in talks with other potential buyers.

After four months of negotiations, talks broke down after a price could not be agreed.

The joint offer for 79% of the firm’s assets came to $750m (£514m), but creditors were unimpressed, claiming that Global Crossing’s assets had a total value of around $22.4bn (£15.3bn).

Global Crossing filed for Chapter 11 bankruptcy protection in January, becoming the fourth largest bankruptcy in US history.

John Legere, Global Crossing’s chief executive officer was disappointed the deal could not be completed.

‘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,’ he said in a statement.

The company is in talks with other “interested potential investors,” he added.

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