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Politics : Right Wing Extremist Thread -- Ignore unavailable to you. Want to Upgrade?

To: Bill who wrote (22762)	1/31/2002 6:47:13 PM
From: sandintoes	Read Replies (1) \| Respond to of 59480

I thought I'd better post this here, rather than the CNBC thread. Wednesday, Jan. 30, 2002 Global Chinese Megacorp Bailing Out Bankrupt U.S. Company A shipping company closely linked to China's Communist government has agreed to pay $750 million for a 70 to 80 percent stake in Global Crossing, a bankrupt international fiber optic cable company whose chairman had close ties to the Clinton administration and Democrat National Committee chairman Terry McAuliffe. Hutchison Whampoa, a huge Hong Kong conglomerate with operations in ports all over the world, including the U.S., the Bahamas and Latin America has tentatively agreed to invest in Global Crossing in what that company's officials hope will pull them out of bankruptcy. The proposed bail out by an investment syndicate headed by Hutchison Whampoa's owner, Hong Kong billionaire Li Ka-shing is reported to be part of the bankruptcy filing which disclosed that Global Crossing was staggering under a whopping $12 billion in debt it could not service. The planned investment is said to be an effort to save the company but has mystified some observers who say that the two companies are involved in totally unrelated businesses. Global Crossing is headed by founder Gary Winnick who saw his $6 billion net worth disappear with the collapse of his company. Winnick, a close friend of Democrat boss Terry McAuliffe, was a golfing partner of former president Clinton and contributed $1 million to the Clinton Presidential Library. Clinton was also instrumental in helping Hutchison Whampoa get control of both ends of the Panama Canal when he gave his OK to the company's long-term leases of the two ports. As NewsMax.com has reported, Winnick gave McAuliffe an chance to buy Global Crossing stock early on, for $100,000. McAuliffe sold the stock for a reported $18 million. According to Global Crossing Chief Executive John Legere, the company's bankruptcy filing is only a part of plans designed to save his company. The main ingredient of that plan is the agreement with Hutchison Whampoa and another Asian company, Singapore Technologies Telemedia. Both already have close ties to Global Crossing and its affiliated companies through overseas ventures, according to the Los Angeles Times which revealed that Hutchison owns half of Hutchison Global Crossing, a communications provider in Hong Kong, while Singapore Technologies owns half of StarHub Crossing, a carrier in Singapore. Hutchison also owns $400 million worth of Global Crossing stock - an investment analysts say will probably be written off as part of the debt restructuring. U.S. security experts have warned that Hutchison Whampoa's far-flung port operations, which includes both the Atlantic and Pacific ends of the Panama Canal, could become bases for the Chinese Peoples' Liberation Army in the event of war with the U.S. Financial analysts predict that Hutchison Whampoa will probably help restore Global Crossing's fiscal health and then sell their holdings in the company.