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The Honolulu Advertiser
Posted on: Friday, July 12, 2002

California firms to bid for Global Crossing

By Simon Avery
Associated Press

LOS ANGELES — Two California investment firms were among the parties preparing to make a formal offer for Global Crossing yesterday, as a court deadline passed for bids on the bankrupt fiber optic network operator.

Gores Technology Group and Platinum Equity were preparing a combined offer that was "substantially higher" than an initial bid by two Asian companies — which creditors rejected in May as inadequate — said Terry Fahn, a spokesman for Gores Technology.

The Asian bid proposed $750 million in cash for 79 percent of Global Crossing, which filed the largest telecom bankruptcy in U.S. history in January. Creditors, who are owed more than $12 billion, would have received $300 million and a 21 percent stake.

Representatives for Platinum Equity and Gores Technology declined to provide details of their bid, citing a nondisclosure agreement. But Fahn said they had received an extension to midnight last night EDT from the bankruptcy court judge to finalize their offer.

John Legere, Global Crossing's chief executive, said in May that more than 60 parties had expressed an interest in buying some or all of his company's vast network that connects 200 cities in 27 countries.

Yesterday, Sue Riccardelli, a Global Crossing spokeswoman, declined to say how many bids the Bermuda-based firm received yesterday, reversing a plan from a day earlier to do so.

Analysts expected only a few bids to be filed yesterday, in part because the telecom market has been in a downward spiral for weeks and more desirable assets could go on the block shortly.

Both Hutchison Whampoa and Singapore Technologies Telemedia, the two Asian firms behind the retracted bid, said they did not submit a new offer before the deadline.

The offer from Platinum Equity and Gores Technology — operated separately by brothers Tom and Alec Gores — would include various components, including cash, equity and notes, said a source familiar with the bidding process.