Another reason for the action in GBLX....Global Crossing Interested in Buying Sprint Internet Assets, Clayton Says
By Lisa Levenson
Global Crossing Interested in Buying Sprint Internet Assets
New York, Oct. 6 (Bloomberg) -- Global Crossing Ltd., which
is building a worldwide phone and data network, is interested in
buying Internet assets that MCI WorldCom Inc. and Sprint Corp.
may have to shed to win regulatory approval of their planned $129
billion combination, Vice Chairman Joseph Clayton said.
A divestiture ``might be an opportunity for some
companies,' Clayton told the Bloomberg Forum. Asked if Global
Crossing would take advantage of that opportunity, Clayton said
``perhaps.'
Global Crossing last month completed its $9.3 billion
acquisition of No. 5 U.S. long-distance Frontier Corp., adding a
national U.S. fiber-optic network to the undersea cables it's
laying. The combined company is selling a bundle of local,
national and international communications services -- including
video, voice and data transmission -- to businesses worldwide.
``It's all about speed-to-market,' Clayton said. ``We don't
discount any of the possibilities. We're open to equity, we're
open to building out organically ourselves, or any type of
partnership.'
The MCI WorldCom and Sprint combination is expected to face
tough scrutiny from federal regulators as control of the $80
billion-a-year market for long distance narrows to the new
company, to be named WorldCom, and No. 1 AT&T Corp.
Some analysts said MCI WorldCom may have to sell Westwood,
Kansas-based Sprint's data network, just as WorldCom was forced
to shed an Internet unit to gain regulatory approval of its
purchase of MCI Communications Corp. last year.
Shares of Hamilton, Bermuda-based Global Crossing rose 5/8
to 25 13/16 in midmorning trading. |
