Deal With Global Is Binding, Source Says

Singapore Technologies Telemedia has a binding contract to buy Global Crossing Ltd. that forbids the telecom firm, which is in bankruptcy proceedings, from considering an offer from investor Carl Icahn, a source close to the deal said. Billionaire Icahn’s U.S.-based XO Communications Inc. said Friday that it offered more than $700 million to buy Global Crossing.

That compares with the $250 million that state-controlled telecom group ST Telemedia has agreed to pay for a 61.5% stake in the U.S.-based fiber optic network, effectively valuing the group at $406.5 million.

But the source close to the deal said ST Telemedia’s binding contract with Global Crossing meant the firm could not consider a competing bid. The U.S. Bankruptcy Court must rule on the deal with ST Telemedia before any new bids for Global Crossing can be considered.