Global Crossing sale finally agreed

Global Crossing's network is politically sensitive

Singapore Technologies Telemedia (STT) has at last won approval to buy bankrupt telecoms group Global Crossing, closing a deal that was beset by opposition from lobbyists in the US.

The Federal Communications Commission, finally gave its backing to the deal, ending speculation that US security services might ask for it to be torpedoed.

There had been concern over selling Global Crossing to a foreign bidder, since the firm runs the country's biggest fibre-optic communications network.

FCC approval should pave the way for Global Crossing to emerge from bankruptcy, which it entered at the beginning of 2001 under a $12.4bn debt mountain.

Objections undermined

The FBI, CIA and the Pentagon had objected to the STT sale, arguing that the firm was too close to the Singaporean Government.

Pressure from these agencies had forced a previous bidder - Hong Kong-based Hutchison - to pull out last year.

A US bidder, XO Communications, had stepped in, but its bid came to nothing.

And security objections were undermined last month, when President George W Bush indicated that he had no problem with an STT takeover.

STT was offering only $250m for a controlling 61.5% stake in Global Crossing, but promises to invest in the US firm.