Sunday October 10, 11:46 am Eastern Time
TELECOMS-Global Crossing set to make more buys
GENEVA, Oct 10 (Reuters) - Global Crossing Ltd (NasdaqNM:GBLX - news), the
rapidly growing U.S. network operator that recently acquired Frontier Corp, said on Sunday
it would soon announce further acquisitions in Europe or Asia where it is now focusing its
expansion.
''You can expect an announcement soon,'' senior vice-president Barry Porter told Reuters.
''We are looking at expanding our geographic reach,'' he said, adding the company would consider an acquisition if it would
take it deep into a market where it wanted a significant presence.
The company is eyeing long distance as well as local loop networks.
Porter said Global Crossing would only buy companies which own state-of-the art networks.
Global Crossing is often rumoured to be on the buy list by telecoms operators who want to get access to the network of fibre
optic, high capacity cables that offer a seamless connection around the U.S., Europe and later this year also Japan.
Global Crossing is mainly known for its high-capacity undersea cables but it rapidly is building its onland presence, targetting
170 cities of which half are outside the U.S.
In Europe, it is expanding to eastern Germany, Spain and Italy after Britain, the Netherlands and France.
''We are very happy with the path we have chosen and we expect to continue to grow on our own. There are a lot of rumours
out there but we do not comment on that,'' he said.
''It is a nice validation of the strategy that we have worked on that the way to serve businesses -- ISP and carrier clients -- is
to have this high capacity seamless network. Whether we continue to grow organically or whether years from now we are part
of a larger organisation, we really have something that is extremely valuable,'' he said.
Wall Street analysts expect Global Crossing to have 2000 revenues of four billion dollars and an EBITDA, earnings before
interest tax and depreciation, of one billion.
''We are already cash positive on an EBITDA level. We are geared for growth and we pay less attention to earnings per share
or dividend. We want to re-invest our cash,'' Porter said.
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