Global Crossing's bank debt inched up higher in the secondary market as the company's current deal to be acquired by Singapore Technologies Telemedia comes under pressure. The loan was quoted slightly higher in the 223/4- 231/2 range after a bank meeting last Tuesday. One trader suggested there may be room for a bidding war between ST Telemedia and XO Communications and Chairman Carl Icahn, which have also made an offer to acquire the company. The loan retreated into the 22-23 range after XO and Icahn revised their offer for the company and its bank debt.
XO and Icahn are still looking to tender the $2.25 billion sum of Global Crossing bank debt, but are now offering 22 cents on the dollar, up from the initial tender offer of 21 on the dollar. In addition, XO is now offering unsecured creditors $200 million to satisfy their claims. The XO offer states that if ST Telemedia receives approval from the Committee on Foreign Investment in the U.S. and the Federal Communications Commission prior to confirmation of XO's plan, then the XO offer will be cancelled. If ST Telemedia has not received the regulatory approval, Global Crossing must opt for the XO plan, without being subjected to any break-up fee for canceling its deal with ST Telemedia. Calls to a Global Crossing spokeswoman were not returned by press time.