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Monday, 27 May, 2002, 04:59 GMT 05:59 UK
Global Crossing left stranded
Global Crossing, the collapsed US telecoms giant, has been left stranded as takeover talks fail.

Hong-Kong conglomerate Hutchison Whampoa and Singapore Technologies Telemedia have announced that negotiations ended without a deal after the groups failed to agree on terms with Global Crossing's banks and creditors.

The two Asian companies had signed a letter of intent to inject $750m into the ailing firm in exchange for a 79% stake in the company's stock.

Global Crossing has said it will continue to talk with potential investors about auctioning off its networks in 27 different countries.

The group filed for bankruptcy protection from its creditors on 28 January with liabilities totalling $12bn and assets worth $22.4bn.

Like many telecoms and technology companies, Global Crossing - which built a business laying huge-capacity fibre-optic cables around the world - went on an acquisition spree to extend its operations.

Its expansive plans were predicated on a relentless growth in demand for network capacity, but technical advances and massive competition mean the expected demand has evaporated.

And US lawmakers and federal regulators have been investigating the collapse, wondering whether Global Crossing is another case of a company flattering its figures.

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