Days after Hutchison Whampoa and Singapore Technologies Telemedia Ltd. declared they were standing firm on their $750 million bid for Global Crossing, the companies have pulled themselves out of the running for the bankrupt telecom.
A New York court had given Global Crossing's creditors, Hutchison and ST Telemedia, until last Friday to strike a deal. The companies admit they invested a significant amount of time and resources to reach a deal with Global Crossing, but say that after months of negotiations, "major differences" among the parties remained. The $750-million offer would have enabled Hutchison and ST Telemedia to snatch up 79 percent of Global Crossing's assets. Global Crossing's creditors shunned the offer, saying the company's assets totaled more than $22.4 billion.
Global Crossing declared bankruptcy at the end of January, and has been looking for a way to resurrect itself. Although Hutchison and ST Telemedia has submitted the only formal bid, Global Crossing remains upbeat, and believes more bids will surface. The company says several potential buyers have expressed some level of interest.
The deadline for bids is June 20, with a final auction slated for July 8.
Although they pulled out of the negotiations, Hutchison and ST Telemedia say they intend to keep their options open, the companies said.