IDT a multinational carrier, announced a bid to acquire Global Crossing that would “at least” match the offer submitted last August by the Hong Kong-based conglomerate Hutchinson Whampoa Ltd and state-controlled Singapore Technology Pte Ltd. IDT said its offer was more viable because of the national security concerns surrounding a China-based company controlling the network of a major supplier to the U.S. government. IDT supplies connectivity to many agencies of the federal government through its IDT Solutions (formerly Winstar) fixed wireless network.
http://www.idttelecom.com
http://www.globalcrossing.com
- On 17 December 2002, a U.S. bankruptcy court confirmed Global Crossing’s Chapter 11 plan of reorganization. Global Crossing recently said it expects to emerge from Chapter 11 as a reorganized company during the first half of 2003. Various regulatory agencies still need to review and approve the transaction for it to take effect.
- IDT, through its IDT Telecom subsidiary, is a facilities-based, multinational carrier that provides telecommunications services to its retail and wholesale customers. The company services over 125 brands of calling cards worldwide.
- In August 2002, Hutchison Telecommunications (Hutchison) and Singapore Technologies Telemedia Pte. Ltd. (ST Telemedia) announced plans to invest a total of $250 million for a 61.5% majority interest in a newly constituted Global Crossing. The agreement was approved by the bankruptcy court in New York and has the support of Global Crossing’s major creditor groups. Global Crossing’s banks and creditors would receive 38.5% of the common equity in the newly constituted Global Crossing, $300 million in cash and $200 million of new debt in the form of senior notes. In January 2002, Hutchison Whampoa and Singapore Technologies Telemedia had initially bid a total of $750 million cash for a joint majority stake in Global Crossing’s equity.
- In September 2002, IDT acquired certain Indefeasible Rights of Use (IRUs) and equipment from Star Telecommunications for “pennies on the dollar.�? The assets acquired represent long-term capacity on US nationwide fiber networks operated by Qwest and Broadwing. The original IRU’s were purchased by Star Telecommunications in 1998 for approximately $68 million. IDT said the fully operational 20-leg network of OC3 and OC12 bandwidth allows it to carry increased voice and data traffic into 13 major metropolitan cities, including Boston, New York City, Washington, DC, Atlanta, Miami, Houston, Dallas, El Paso, Phoenix, San Diego, Los Angeles, San Francisco, and Las Vegas.
- In July 2002, IDT announced unsolicited (and unsuccessful) bids to acquire two units of WorldCom: its MFS and Brooks Fiber units and its MCI consumer and small business long distance units. IDT valued the combined bids at $5 billion.
- In December 2001, IDT acquired Winstar Communications for $42.5 million ($30 million in cash and $12.5 million in IDT Class B Common Stock). Other IDT acquisitions include major equity interests in Net2Phone and Talk America Radio Network.