Wednesday, April 30, 2003

Hutchison Walks Away from Global Crossing (Reuters)

"Hutchison Whampoa Ltd. on Wednesday abandoned plans to buy a stake in Global Crossing Ltd. due to U.S. regulatory resistance, leaving Singapore Technologies Telemedia as the sole investor to gain control of the bankrupt telecommunications company. Hutchison (HKSE:0013.HK - News) decided to walk away after U.S. national security officials balked at Hong Kong-based Hutchison's ties to China, sources familiar with the situation said ... The pact with Singapore Technologies, however, still may spark objections from U.S. lawmakers, since the firm is a unit of Temasek Holdings Ltd., the investment arm of the Singapore government. U.S. law restricts the purchase of a U.S. telecommunications company by a company that is owned or controlled by a foreign government. Singapore Technologies would need a waiver to complete the deal. Sen. Ernest Hollings, a South Carolina Democrat, tried to block Deutsche Telekom AG's purchase of VoiceStream Wireless Corp. in 2001 due to concerns that the German firm was backed by a foreign government. In the end, that deal was completed.

comments: The article didn't mention the $600,000 or more that Richard Perle just lost because the deal didn't go through. questions: Why WAS Perle working for Hutchinson Whampoa on this deal if it was a "national security threat" ... who's in charge of intelligence? Shouldn't we KNOW if the deal was a security threat and wouldn't that raise further questions about Perle who sits on the Defense Policy Board? Certainly the U.S. law mentioned above which restricts foreign ownership of US telecommunications ... especially communications from the Pentagon ... are there for a reason SUCH AS protecting national security ... WHY all the waivers? Is this another example of corrupt and/or inept government officials? >>Read full story ...

No comments: