Hutchison Ends Deal for Global Crossing
Hutchison Whampoa Ltd. said it would exit an agreement to buy a stake in Global Crossing Ltd. because of U.S. regulatory resistance, leaving Singapore Technologies Telemedia as the sole investor to gain control of the telecommunications company.
Hutchison decided to walk away after the U.S. government intensified its formal probe of Global Crossing’s deal to sell a majority stake to the two Asian companies for $250 million.
U.S. national security officials had balked at Hong Kong-based Hutchison’s ties to China despite the company’s offer to distance itself from the daily operations of Global Crossing, sources familiar with the situation said.
Singapore Technologies now will be the sole buyer of the 61.5% stake in Global Crossing.
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