- Hutchison Whampoa, the mammoth company that runs the
Panama Canal and has close ties to the Chinese army, has a new rhinestone
in its crown: Global Crossing.
-
- Along with another Asian company, Singapore Technologies,
it paid $250 million today for the bankrupt fiber-optic network company
- a third of the original offer.
-
- "An outside financial adviser to Global Crossing
who was called to testify at a hastily scheduled hearing early Friday said
only three credible bids had been received during a lengthy auction process
and that bidders were spooked by the ongoing collapse of the
business,"
the Associated Press reported.
-
- "It's a very difficult world today in the
telecommunications
industry," said Arthur Newman, the senior managing director in charge
of the restructuring for Blackstone Group.
-
- The Asian companies agreed to invest $250 million in
Global Crossing's business, and to pay $300 million in cash and issue $200
million in notes to its creditors. "The investors will hold a
controlling
61.5 percent stake in the new Global Crossing that emerges from bankruptcy,
possibly early next year," AP said.
-
- Global Crossing is the fourth-largest bankruptcy in U.S.
history.
-
- Observations:
-
- A Chinese company with ties to the Red Army snaps up
the company known for its fishy ties with Democrat national chairman Terry
McAuliffe, Bill Clinton's boy.
-
- Clinton was notorious for the payments he received from
the Chinese.
-
- Thanks to an insane giveway by another Democrat
president,
Jimmy Carter, Hutchison Whampoa controls the Panama Canal.
-
- Why has Hutchison Whampoa's purchase of Global Crossing
received almost no media attention?
-
-
- All Rights Reserved © NewsMax.com
|