China fears shatter Hutch Global Crossing bid

Retires gracefully

  • alert
  • submit to reddit

Mobile application security vulnerability report

Hutchison Telecommunications has withdrawn its offer to buy a 30.75 per cent in Global Crossing, the death-bed US telco, citing difficulties over US regulatory concerns "within a reasonable investment timeframe".

And as owning a minority investment is not core to the company it's handing over its rights to buy the share to ST Multimedia, the Singapore telco.

In a graceful coda, Hutch says: "Global Crossing and ST Telemedia and their management teams have worked diligently with Hutchison in attempting to consummate this transaction. Going forward, Hutchison hopes that Global Crossing can consummate an agreement with ST Telemedia and emerge successfully from bankruptcy."

So what exactly were those regulatory concerns which stymied the participation of Hutch in Global Crossing's takeover? Hutchison Wampoa, the parent company, is, after all, of deep-dyed blue-chip hue.

In a word: China. In a sub-text: Communism. The sticking point was the Committee on Foreign Investment in the United States (CFIUS), "a panel made up of top U.S. national security and economic officials," Reuters
reported in March. "CFIUS had concerns about a large U.S. telecommunications company being majority owned by a company with strong ties to China, sources familiar with the process previously told Reuters."

Richard Perle, Iraq war architect and arch-liberal, was comfortable enough snouting in the trough for Global Crossing, despite the proposed involvement of Hutchison. So where does CFIUS get off? ®

Related story

Global Crossing bankruptcy plan approved

The Power of One Brief: Top reasons to choose HP BladeSystem

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
prev story


Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.