Carlyle Group May Make Asia Global Crossing Bid
Carlyle Group and other investors may bid at least $250 million for Asia Global Crossing Ltd., which operates undersea communications cables in Asia, the Asian Wall Street Journal reported, citing unidentified sources.
Carlyle, a U.S. private equity firm with more than $12.5 billion of assets, may team up with Emerging Markets Partnership, Citic Pacific Ltd. and Softbank Asia Infrastructure Fund to try to buy Asia Global Crossing, the paper said.
“We are talking to several people, but I can’t say if it’s any of those folks,” said Madelyn Smith, a spokeswoman for Asia Global Crossing. Christopher Ullman, a Carlyle spokesman, declined to comment.
Asia Global Crossing is 58% owned by Global Crossing Ltd., which filed for bankruptcy protection in January with $12.4 billion in debt. Asia Global Crossing hired financial advisor Lazard Freres to raise funds after sales slumped and Global Crossing refused in December to lend it $400million.
Both companies missed a Monday deadline for submitting a required report on sales, profit and other information to the U.S. Securities and Exchange Commission. The companies cited investigations into the parent company’s accounting.
Hutchison Whampoa Ltd., controlled by billionaire Li Ka-shing, and state-owned Singapore Technologies Telemedia Ltd. own stakes in Asia Global Crossing and have offered to buy 79% of the parent for $750 million.
Microsoft Corp. and Softbank Corp., Japan’s biggest Internet investor, each own 14.9% of Asia Global Crossing.
“We don’t comment on speculation and rumors about potential investments,” said Microsoft spokesman Mark Thomas.
In related news, Asia Global Crossing said it has reached agreement with KDDI Corp. and NEC Corp. on easing payment schedules on loans.
Asia Global Crossing will pay the cable unit of KDDI $45 million this year instead of the $95 million it was due to pay.
NEC was owed $240 million this year by Asia Global Crossing. The new agreement spreads that payment out until 2005.
