Hutchison stands pat on bid for Global Crossing
Copyright 2002 The Deal L.L.C.
The Daily Deal…05/24/2002
Hutchison Whampoa Ltd., the flagship investment holding company of Hong Kong billionaire Li Ka-shing, said Thursday it would stand firm on its $750 million offer price for Global Crossing Ltd., adding that it might lower the price further for smaller parts of the failed underseas cable operator now in bankruptcy proceedings.
A New York court has given Global Crossing's creditors, Hutchison and its partner, Singapore Technologies Telemedia, until today to strike a deal.
If no deal is reached Hutchison can choose to participate in an auction for a piece of Global Crossing but warned "the price might be even lower." Hutchinson said a bid for Asia Global Crossing, the 58.8%-owned subsidiary of Global Crossing, only awaits a move by the company to resolve its debt to bondholders. In April, Hutchison sought to buy out Global Crossing's stakes in three joint ventures, foremost among them being the 50% stake in Hong Kong telecom Hutchison Global Crossing, for a combined $ 120 million in cash.