Due to national security concerns, the U.S. Department of Defense will oppose the sale of Global Crossing to Singapore Technologies Telemedia, according to an internal memo leaked to Reuters. Other reports said Deputy Secretary of Defense Paul Wolfowitz had not yet made up his mind on the issue. Separately, Singapore Technologies Telemedia said it remained optimistic about completing the deal.
http://www.defenselink.milhttp://www.globalcrossing.com
- In March, The New York Times reported that Richard N. Perle, chairman of the influential Defense Policy Board, had been retained by Global Crossing to help overcome Defense Department resistance to its proposed sale to a foreign firm. Perle reportedly is close to many senior officials, including Defense Secretary Donald H. Rumsfeld, who appointed him to lead the policy board in 2001.
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On 30-April-2003, Hutchison Telecommunications decided to withdraw its proposed acquisition of a 30.75% stake in Global Crossing due to opposition to the deal from the U.S. government’s Committee on Foreign Investment.