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IN BRIEF / Technology

Hutchinson to Buy Asia Global Crossing's Stakes

April 30, 2002|Bloomberg News

Hutchison Whampoa Ltd., which has said it may bid for fiber-optic network operator Asia Global Crossing Ltd., agreed to buy out that company's stakes in three telephone joint ventures for $120million.

Hutchison will buy Asia Global Crossing's halves of Hutchison Global Crossing and Hutchison GlobalCenter, which sell phone, data and Internet services.

Hutchison also will buy Asia Global Crossing's 42.5% stake in ESD Services, the operator of an English-Chinese Web search site.

Asia Global Crossing, 59%-owned by Global Crossing Ltd., needs to raise cash to stay in business after its parent filed for bankruptcy protection. Asia Global Crossing's undersea network links eight Asian countries and the U.S.

Hutchison, controlled by Hong Kong billionaire Li Ka-shing, previously made an offer for Global Crossing. Hutchison and government-owned Singapore Technologies Telemedia have offered $750million for the Hamilton, Bermuda-based company.

Hutchison leases network space from Asia Global Crossing. The network operator offers local-phone access in Hong Kong by connecting to Hutchison Global Crossing's network.

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