Posted on 08/10/2002 7:18:21 AM PDT by Tumbleweed_Connection
Hutchison Whampoa, the mammoth company that runs the Panama Canal and has close ties to the Chinese army, has a new rhinestone in its crown: Global Crossing.
Along with another Asian company, Singapore Technologies, it paid $250 million today for the bankrupt fiber-optic network company - a third of the original offer.
"An outside financial adviser to Global Crossing who was called to testify at a hastily scheduled hearing early Friday said only three credible bids had been received during a lengthy auction process and that bidders were spooked by the ongoing collapse of the business," the Associated Press reported.
"It's a very difficult world today in the telecommunications industry," said Arthur Newman, the senior managing director in charge of the restructuring for Blackstone Group.
The Asian companies agreed to invest $250 million in Global Crossing's business, and to pay $300 million in cash and issue $200 million in notes to its creditors. "The investors will hold a controlling 61.5 percent stake in the new Global Crossing that emerges from bankruptcy, possibly early next year," AP said.
Global Crossing is the fourth-largest bankruptcy in U.S. history.
Observations:
A Chinese company with ties to the red army snaps up the company known for its fishy ties with Democrat national chairman Terry McAuliffe, Bill Clinton's boy.
Clinton was notorious for the payments he received from the Chinese.
Thanks to an insane giveway by another Democrat president, Jimmy Carter, Hutchison Whampoa controls the Panama Canal.
Why has Hutchison Whampoa's purchase of Global Crossing received almost no media attention?
I'm posting this article because I can't find it, if others which are similar exist I'm glad you're aware.
…Hutchison Whampoa controls the Panama Canal.
Hutchison Whampoa neither runs or controls the Panama Canal. The Republic of Panama does. If NewsMax is so full of misinformation about Panama, I can’t trust it to be correct about other news items.
..."It's one more piece of evidence that the Clinton administration was lying about Communist Chinese intentions in Panama," Judicial Watch President Tom Fitton told the Washington Times.
According to the April 22, 1998, intelligence report, an article from the Defense Intelligence Agency intelligence information service headed "Panama: China Awaits U.S. Departure" stated "Li Ka-shing, the owner of Hutchison Whampoa Lt. (HW) and Cheung Kong International holdings Ltd. (CK) is planning to take control of Panama Canal operations when the U.S. transfers it to Panama in December 99,"
"Li is directly connected to Beijing and is willing to use his business influence to further the aims of Chinese government," the report states. An army intelligence analyst is quoted in the report as noting that "Li's interest in the canal is not only strategic, but also a means for outside financial opportunities for the Chinese government."...
No, I’m not a Chicom sympathizer. I live the in the Republic of Panama and am closer to what is going on than are most people. The hysteria about the Panama Canal from outsiders is overwhelming thanks to the misinformation from the likes of NewsMax. Besides, although Hushison Whampoa is a Chinese company, it is managed by the British here. We have no RPCs running around the place. The big worry here concerns the Colombian terrorists and their terrorist friends sitting at our eastern boarder and not the Chinese who are sitting in China. Also, for a little added information, Panama has diplomatic ties with Taiwan and not the Peoples Republic of Panama.
By the way, the British are doing a spectacular job with the Balboa and Cristobal ports (American companies have contracts for building/renovations on some of the other ports). The U.S. company who is building the new railroad line from Balboa to Cristobal is also doing a magnificent job.
New York, Aug. 9 (Bloomberg) -- Global Crossing Ltd. agreed to sell a majority stake in the company for $250 million to Hutchison Whampoa Ltd. and Singapore Technologies Telemedia Pte, the same suitors that offered three times as much in January for a bigger share of the fiber-optic network operator.
When Global Crossing filed for bankruptcy on Jan. 28, it agreed to a takeover by Hong Kong-based Hutchison and Singapore- based ST Telemedia, which then offered $750 million for a 79 percent stake. A month later the offer was rejected by creditors, and Global Crossing sought a better deal in an auction.
Global Crossing and creditors settled for a lower price as demand for fiber-optic lines and communications slumps, analysts said. The company, founded in 1997 by Gary Winnick, filed for bankruptcy after it couldn't generate enough sales to repay $12.4 billion in debt amassed to assemble its 27-nation network....
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