XO May Offer Cash for Global Crossing

Carl Icahn’s XO Communications Inc. said it might offer $700 million in cash for Global Crossing Ltd. after an initial offer, which included notes and warrants, was spurned by creditors of the ailing optical network operator.

XO said it also might offer $472.5 million for the company’s bank debt, on the condition Global Crossing cancels an agreement to sell control to Singapore Technologies Telemedia.

Icahn’s move ups the ante for control of Global Crossing’s 100,000 miles of international high-speed telecommunications lines. Creditors Tuesday backed the plan to sell majority control of the network operator to ST Telemedia, saying rival bids would make it harder for Global Crossing to exit Chapter 11 bankruptcy protection.