Global Crossing's bank debt stayed at the 21-22 level last week, with sources noting that activity was quieter than usual despite Carl Icahn's offer to buy all the bank debt for 21 cents on the dollar two weeks ago. Some investors holding the paper seem to be banking on this being the first of incrementally higher bids and that this one is too low. It could not be determined if any holders of the debt have taken Icahn up on his offer.
XO Communications and its chairman, Icahn, are proposing a tender offer for any and all of Global Crossing's $2.25 billion of senior secured bank debt. XO and Icahn are also prepared to offer $700 million in cash to acquire all the outstanding assets of Global Crossing as a stalking-horse bidder. Another argument weighing against trading the names is that Singapore Technologies Telemedia is close to acquiring Global Crossing with only regulatory approval from the Committee of Foreign Investment in the U.S. required, a buysider said. Calls to Icahn were not returned.