As much as $50 million of Global Crossing's bank debt is believed to have traded as high as 22-23 last week following reports of the accidental release of a list of possible bidders for the bankrupt telecom. Investors now believe that there is more interest in the name, one trader explained, adding, "The more bidders the better." An employee at the law firm of Weil, Gotshal & Manges is believed to have e-mailed a list of the bidders, which include companies such as Verizon Communications, the BT Group, and financial firms such as Credit Suisse First Boston, Canadian Imperial Bank of Commerce, and Quadrangle Group, with information about the bidding procedure. A spokesman for the company declined to comment. The deadline for the submission of qualified bids is June 20.
Last month, $20 million of Global Crossing's bank debt traded in the 20-23 range as investors weighed the value of new bids for Global Crossing. Market players have been debating takeover bids for the name and the value of the company's assets in the case of liquidation. Gores Technology Group and Platinum Equity are expected to make a bid for the company as well (LMW, 3/11). Spokesmen at Weil, Gotshal & Manges and Global Crossing declined to comment.