Buyer emerges for Global Crossing

Already the court is looking at another offer from Hutchison Whampoa ofHong Kong and Singapore Technologies Telemedia for $750m.

According to the terms of Global Crossing’s bankruptcy rescue proposal,the minimum Gores could offer would be $800m, including a $40m penalty fee for the two Asian companies.

While a Gores Technology spokesman declined to comment, there areindications that momentum has been building against the two Asiancompanies.

Already one of Global Crossing’s creditors, Fleet National Bank hasfiled a motion in federal bankruptcy court trying to stop the deal,alleging the offer is too low and “may be tainted by collusion andself-dealing.”

The New York Times recently reported that two Global Crossing directors,including chairman and founder Gary Winnick, secretly invested $25m in a firm effectively controlled by Singapore Technologies.

Gores, which has acquired more than 34 technology companies over thepast 12 years, is likely to salvage the company’s $12bn worldwidefiber optic network.

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