Deutsche Telekom, Level 3 Communications Inc. and Verizon Communications Inc. are among more than 60 potential investors that might bid next month for Global Crossing Ltd., the bankrupt operator that owns a fiber-optic network linking more than 200 cities around the world, according to media reports.
Weil Gotshal & Manges LLP a law firm representing Global Crossing, mistakenly sent out the list of suitors March 28 to potential bidders, the New York Times reported in April.
On Wednesday Global Crossing disclosed more than 60 investors have demonstrated interest in the company, which expects its first-quarter performance to fall in line with guidance presented to creditors.
Hutchison Whampoa Ltd. and Singapore Technologies Telemedia Pte. Ltd. have made a $750 million joint bid for a majority stake in Global Crossing. But creditors reportedly have considered the offer too meager for a carrier that valued its assets at $22.4 billion and debt at $12 billion. Hutchison Whampoa and Singapore Technologies have until May 21 to submit their final bid to Global Crossing, Weil Gotshal & Manges and The Blackstone Group, an investment and advisory firm.
Other companies interested in vying for Global Crossing must deliver written copies to the carrier and its law and advisory partners by 3 p.m. (EST) June 20.
Level 3, a carrier’s carrier based in Broomfield, Colo., might be interested in bidding for Global Crossing or bankrupt operators Williams Communications Group Inc. and Flag Telecom, The Wall Street Journal reported Tuesday.
Other potential bidders interested in Global Crossing include telecom operators BT Group, Telefonica and Telefonos de Mexico as well as investment firms Credit Suisse First Boston, Bank One and the Carlyle Group among others such as Southern Energy, a British utility, according to the New York Times.
Global Crossing announced Wednesday that it has signed 475 new service agreements during the first quarter, including renewals and new business, despite recording one of the largest and most visible Chapter 11 bankruptcy filings in telecom industry.
Global Crossing expects to post first quarter revenue of $788 million and cash balance of roughly $894 million
Global Crossing laid off 2,000 employees and closed 181 offices during the first quarter and expects to close 217 offices by the end of the year, resulting in annualized savings of $121 million.
